Silver could fall further after latest slump, analysts say as they warn of demand destruction

Silver bars stacked at the Perth Mint Refinery, operated by Gold Corp., in Perth, Australia, Feb. 5, 2026. Matt Jelonek | Bloomberg | Getty Images Silver's breakneck 2025 rally has created the conditions for demand destruction among buyers of the precious metal, according to analysts, who say prices could fall even further from last year's highs. The metal's wide range of industrial purposes means it is more sensitive to the economic cycle than gold, as an essential component in a variety of goods, from computers and mobile phones to solar panels and cars. Silver price gains of around 140% last year have been deterring buyers in various industries and its elevated price levels are beginning to weigh on demand, UBS said in a note published on May 22. "The demand erosion is likely to persist as long as prices remain at current levels," they wrote. "Unlike gold, which benefits from robust central bank buying, silver lacks this strategic demand anchor and remains absent from official sector reserves. As a result, silver is more vulnerable to shifts in private investment and industrial demand, and is likely to lag gold." Stock Chart Icon Stock chart icon How silver Comex futures have fared year-to-date. UBS believes the current investment case does not sufficiently reward investors for the associated volatility and, as such, it remains an "unappealing" position for them. …