Analysts Warn: Prices of Silver and Other Precious Metals Are on the "Edge of a Cliff"

PANews, December 28th – According to Golden Ten Data, as the prices of silver and other precious metals continue to surge, some analysts have warned that precious metal prices are now “on the edge of a cliff,” with correction risks accumulating. Analysts at Capital Economics wrote in a report: “Precious metal prices have risen to levels that we find difficult to justify based on fundamentals.” They predict that as the frenzy over gold subsides, the price of silver may fall back to around $42 by the end of next year. UBS has warned that the current rapid rise in precious metal prices is largely due to insufficient market liquidity—which means a sharp pullback is likely. UBS emphasized that the short-term risks of trading precious metals have clearly increased, and given that gold prices have reached new highs, there is also a significant risk that short-term investors may take profits. Thin year-end liquidity “may have exacerbated price volatility,” making short-term trends more difficult to interpret. Wang Yanqing, Chief Precious Metals Analyst at CITIC Futures, stated that from a fundamental perspective, there have been no significant changes in the short-term factors affecting precious and non-ferrous metals. Although there are long-term bullish factors such as “de-dollarization” in the market, the recent rapid surge has clearly overtraded these long-term positives, with heightened speculative sentiment posing potential risks to the stable operation of the market.