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Silver Demand Faces Headwinds As Prices Deter Industrial Buyers

Silver's 140% surge in 2025 is destroying demand across industrial sectors, analysts warned. The metal peaked at $120 per ounce on January 28 before plummeting nearly 30% in a single day. Prices have since recovered to the $75-78 range after hitting a 2026 low of $67.60 in March. UBS said demand erosion will persist as long as prices remain elevated. Unlike gold, silver lacks central bank buying support and remains absent from official reserves, making it vulnerable to shifts in private investment and industrial demand. Its broad applications in electronics, mobile phones, solar panels and automobiles tie silver closely to economic cycles. UBS characterized silver as an unappealing investment position given current volatility levels and insufficient risk-adjusted returns.