HSBC Revises Silver Price Forecasts Upward Amid Strong Gold Correlation

HSBC has significantly raised its silver price projections, now forecasting averages of $35.14 per ounce for 2025, $33.96 for 2026, and $31.79 for 2027. The bank attributes this bullish outlook primarily to silver's strong correlation with gold, which has surged 29% this year to record levels above $3,500 per ounce.

The precious metal recently breached $35.82 per ounce—a 13-year high—with year-to-date gains of 24%. While industrial demand may dip slightly in 2025 after four years of expansion, HSBC anticipates a rebound in 2026, particularly for photovoltaic and electronics applications.

Market fundamentals show tightening conditions, with projected deficits growing to 206 million ounces in 2025 before narrowing to 126 million by 2026. This supply-demand dynamic, coupled with ongoing geopolitical tensions fueling safe-haven demand, creates a supportive backdrop for silver's upward trajectory.