HSBC expects silver to average $35.14/oz in 2025 and remain elevated through 2027 amid record-high gold and ongoing supply deficits. Fundamentals remain intact, yet closely tied to external forces.
HSBC recently raised its average silver price forecast to $35.14 per ounce for 2025, $33.96 for 2026, and $31.79 for 2027.
Strong gold performance and heightened safe-haven demand underlie the HSBC silver market outlook. We explore whether silver’s momentum stands on solid ground or hinges on broader market pressures.
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Silver Forecasts and Market Context
The bank lifted its 2025 forecast from $30.28, its 2026 projection from $26.95, and its 2027 estimate from $28.30, signaling an upward shift in expectations.
HSBC frames this change as linked more to silver’s correlation with gold, now trading at record levels, than to silver’s own fundamentals.
Gold climbed roughly 29% this year, reaching $3,500 per ounce in April amid geopolitical and trade tensions. Silver itself recently surpassed $35/oz, its highest level in over 13 years, crossing $35.82 per ounce on June 5, marking a 24% gain year-to-date.
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Silver Supply-Demand Dynamics and Drivers
HSBC projects a 206 million-ounce silver deficit for 2025, up from 167 million ounces in 2024, with the gap narrowing to 126 million ounces by 2026.
The bank expects industrial demand for silver to dip slightly this year after four years of record expansion but to rebound in 2026, particularly in photovoltaics and electronics.
Meanwhile, jewelry and silverware segments may weaken further due to elevated prices. Coin and bar demand, already strong, may ease following recent robust purchases. Silver mine production continues to grow slowly and seems unlikely to eliminate the deficit.
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Conclusion
HSBC delivers a cautiously bullish stance on silver. The elevated forecasts reflect persistent structural deficits and gold’s influence as a safe-haven trigger rather than unique silver strength.
Going forward, changes in gold prices, U.S. dollar direction, and industrial demand gains will determine if silver’s momentum proves sustainable.
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