Stock market
• HSBC raised its silver price forecasts for both 2026 and 2027, projecting average prices of $75 per ounce in 2026 and $68 per ounce in 2027.
• The bank said silver’s recent rally has been supported by strong safe-haven demand, tight supply conditions, geopolitical tensions, and higher gold prices.
• Despite the upgraded forecasts, HSBC expects moderating supply deficits and softer industrial and jewelry demand to limit sustained upside over the medium term.
HSBC has increased its silver price outlook for both 2026 and 2027 as the precious metals market continues experiencing heightened volatility and strong investor demand.
The bank now forecasts silver will average approximately $75 per troy ounce in 2026 and $68 per ounce in 2027, compared with previous estimates of $68.25 and $57 respectively.
The revised outlook reflects stronger-than-expected market conditions, particularly following silver’s sharp rally earlier in the year.
HSBC’s updated projections highlight how geopolitical uncertainty, safe-haven flows, and constrained supply dynamics continue influencing precious metals markets globally.
Silver surged to a record nominal high near $121 per ounce in late January as investors moved aggressively into precious metals amid rising geopolitical tensions and tariff-related uncertainty.
The rally was also supported by sharply higher gold prices and tightening supply conditions across the silver market.
Following the initial surge, silver later experienced a sharp pullback toward approximately $64 per ounce during early February as the U.S. dollar strengthened and gold prices weakened amid conflict-related market volatility.
The metal subsequently recovered and later traded back above $86 per ounce as investor demand stabilized and broader commodity market conditions improved.
Despite the stronger price forecasts, HSBC maintained a cautious long-term stance on silver’s upside potential.
The bank expects global silver supply deficits to narrow significantly over the next two years as mine production and recycling activity increase.
HSBC forecasts the global silver market deficit will decline to approximately 73 million ounces in 2026 compared with 143 million ounces in 2025.
The deficit is then expected to tighten further to roughly 25 million ounces in 2027 as additional supply enters the market.
According to HSBC, moderating supply shortages are unlikely to support prolonged periods of sharply higher silver prices.
Silver continues serving both as a precious metal investment and as a key industrial commodity.
Industrial demand tied to electronics, solar energy, semiconductor manufacturing, and clean-energy technologies remains an important driver of long-term silver consumption.
However, HSBC noted that softer industrial demand growth and weaker jewelry consumption could limit further upside momentum despite continued investor interest in safe-haven assets.
The bank expects these demand trends to become increasingly important as supply conditions gradually improve.
Safe-haven demand remains one of the most important drivers across precious metals markets.
Investors continue monitoring geopolitical tensions, inflation risks, central bank policy, currency volatility, and global economic uncertainty when allocating capital toward assets such as silver and gold.
Higher volatility across financial markets has continued supporting interest in defensive assets throughout 2026.
At the same time, rising interest rates and a stronger U.S. dollar can create pressure on non-yielding assets such as precious metals during periods of tighter monetary conditions.
HSBC’s longer-term outlook suggests silver prices could weaken during the second half of both 2026 and 2027 as supply conditions normalize and deficits continue narrowing.
James Steel, HSBC’s chief precious metals analyst, said moderating supply deficits are not expected to drive sustained sharp price increases over extended periods.
The bank continues viewing current market conditions as supportive in the near term while remaining more cautious about long-term upside sustainability.
Looking ahead, investor focus will likely remain centered on geopolitical developments, inflation trends, industrial demand conditions, supply growth, and broader precious metals market sentiment.
While HSBC’s upgraded forecasts reflect stronger near-term expectations for silver prices, the bank continues warning that improving supply conditions may limit sustained long-term gains.
Silver’s future direction will likely remain highly sensitive to safe-haven demand flows, macroeconomic uncertainty, and the evolving balance between industrial consumption and global production growth.
For confidential insights on precious metals, commodity market trends, and global macroeconomic developments, connect with the SKN team for professional engagement.
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