ubs says
The pullback has done little to change the underlying bull story. Silver remains in chronic deficit as mine output lags demand from solar panels, electric vehicles and advanced electronics, leaving available inventories near decade lows and periodically pushing the market into backwardation, where spot prices trade above futures.
With China set to tighten exports of the metal in January, some strategists see prices revisiting the recent $80-plus peak and potentially testing the $85 to $100 range. Still, after Monday's whipsaw, investors in SLV are being reminded that this squeeze-driven rally is likely to stay volatile.
