UBS noted a significant upswing in silver prices, attributing the surge to a growing investor conviction in bullish gold trends. The gold-to-silver ratio has dropped sharply, reaching its lowest levels since late 2022 to early 2023. Despite a recent pullback in precious metal prices, the ratio has maintained its position near these lows.

Silver has garnered attention from investors who previously overlooked the rise in gold, as well as those seeking more volatile trading options. The metal has benefited from a recent wave of risk-on sentiment and a strong performance in the industrial metals sector, leading to a breakout in prices.

The supply and demand dynamics for silver are also under the spotlight, with tight conditions providing additional support for the metal's value. UBS suggests that these factors, combined with the current momentum in precious metals, could result in significant upward potential for both gold and silver in the future.

UBS's outlook for silver is optimistic, with expectations of considerable upside risks to their projections for the metal, as well as for gold. This positive sentiment reflects the adage that a comeback can be much stronger than the initial setback, hinting at a robust recovery for silver prices following any declines.

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