Silver’s $110 six day churn collides with UBS’s longer term view

Since the start of the year, silver has recorded 11 moves of 5% or more in either direction.

Over the past six trading sessions, silver has experienced more than $110 per ounce in cumulative two-way price movement.

With spot prices around $77, traders have effectively seen the market trade through more than one and a half times silver’s full value in under a week.

A key question now is whether silver’s recent plunge from ~$115 reflects a broader risk off move rather than a collapse in fundamentals.

UBS believes longer term fundamentals remain intact. However, UBS strategists also noted that silver could struggle to remain above $85 an ounce in the near term, given how elevated volatility has become.