HSBC Lifts Silver Outlook as Gold Surge Fuels Demand
The silver price forecasts at HSBC have experienced a significant upward revision until 2027 because of gold's historical price peak and investor interest in safe-haven assets during times of economic and geopolitical instability.
The bank now predicts silver prices will reach $35.14 per ounce in 2025 instead of $30.28 while forecasting $33.96 for 2026 and $31.79 for 2027. The analysts attribute silver's price increase to its strong connection with gold rather than supply-demand factors because bullion prices reached $3,500 an ounce in April during the U.S.-China trade war.
The bank predicts industrial silver consumption will decrease in the current year after four consecutive years of growth but will recover in 2026 because of solar and electronics industry growth. The market expects coin and bar purchases to remain limited because of previous strong buying activity and current high prices while jewelry and silverware demand continues to decline.
The mine supply shows a gradual increase while the 2025 deficit projection reaches 206 million ounces from this year's 167 million before decreasing in 2026. The predicted weaker dollar combined with central bank policy uncertainty will create additional price support.
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