Silver prices are experiencing significant downward pressure as major financial institutions highlight weakening demand and the lingering effects of a 2025 price surge. After briefly exceeding $120 per ounce in January, silver prices plummeted nearly 30% in a single day and have since struggled to recover, trading mostly between $75 and $78 in recent weeks. On Thursday, prices dropped over 3.5% to approximately $71.98. UBS has warned that the 140% price increase in 2025 has dampened industrial demand, with expectations of continued contraction if prices remain high. Unlike gold, silver lacks strategic demand from central banks, making it less attractive for asset allocation. HSBC also considers silver "fundamentally overvalued" with limited upside, predicting a widening gold-to-silver ratio. Macquarie forecasts potential interest rate hikes by the Federal Reserve in 2027, which could further pressure precious metals, posing significant downside risks for silver.