BlockBeats report: On May 28, the silver market is facing dual pressures of weakening demand and downward price pressure, with multiple institutions noting that the "aftereffects" of the 2025 price surge are now emerging.
After silver prices surged past $120 per ounce on January 28, they plunged nearly 30% in a single day; although there was a subsequent rebound, the overall trend has been downward. After recovering to around $87 on May 14, silver faced renewed selling pressure and has primarily traded between $75 and $78 over the past two weeks, dropping more than 3.5% intraday on Thursday to approximately $71.98.
UBS noted in a recent report that the approximately 140% rally has significantly suppressed downstream industrial demand and warned that demand contraction could persist as long as prices remain at current levels. The bank also believes that, unlike gold, which benefits from central bank gold purchases, silver lacks a strategic demand anchor, making it an "unattractive" allocation in the current environment.
HSBC also believes silver is "fundamentally overvalued," with limited upside potential, and anticipates that the gold-to-silver ratio may widen, suggesting silver could underperform relative to gold. Macquarie offers a more negative macroeconomic assessment, expecting the Federal Reserve may raise rates again in the first half of 2027, exerting downward pressure on precious metals, and warns that silver prices face significant downside risk if macroeconomic conditions deteriorate further.