Silver Prices Surge: HSBC Predicts New Record Highs

Bank Raises Forecasts as Gold Rally Boosts Safe-Haven Demand

Silver is once again catching investors’ attention, with HSBC sharply increasing its price forecasts and suggesting that the metal could soon hit record highs — potentially surpassing its 2011 peak of nearly $50 an ounce.

HSBC Increases Silver Price Forecasts

HSBC has revised its silver price outlook upwards for both 2025 and 2026, reflecting a strong rally that has seen silver prices jump by nearly 65% so far in 2025. The bank highlights silver’s traditional role as a safe-haven asset, especially during times of geopolitical tension and economic uncertainty.

• 2025 average forecast: Raised to $38.05/oz from $35.14
• 2026 average forecast: Increased to $44.50/oz from $33.96
• End-2025 target: $49.00/oz
• End-2026 target: $41.50/oz

Why Silver is Gaining Ground

According to HSBC analysts, silver is experiencing what they call a “spillover rally” from gold. With gold surpassing $4,000 an ounce for the first time in history, silver has followed suit, benefitting from increased investor interest in precious metals.

“The silver market stands on the cusp of the record high of nearly USD50/oz set in May 2011, but is likely to surpass that level in the near term,” said HSBC in a research note dated 7 October.

Wider Trading Ranges Expected

HSBC predicts a wide price range for silver over the next two years:

• Remainder of 2025: $45.00 to $53.00/oz
• Full-year 2026: $40.00 to $55.00/oz

This suggests continued volatility, but with an overall bullish trend as safe-haven demand remains robust.

Investment Demand and Supply Constraints

The bank also noted several fundamental drivers supporting silver’s rally:

• Tight supply in physical silver, especially in London
• Robust investment demand, despite this year’s sharp price increases
• Spillover buying from gold investors, due to the two metals’ historical correlation
• Geopolitical risks, including U.S. tariff threats, pushing metals into the American market

Spot silver was trading at $48.83 at the time of HSBC’s note, placing it just short of the 2011 record.

Silver vs Gold: Tracking the Trend

Silver typically lags gold in performance but tends to follow a similar upward trajectory. The 2025 rally has so far seen:

• Silver up nearly 65% year-to-date
• Gold up approximately 55% YTD, breaking historic levels

HSBC notes that gold’s rise often acts as a catalyst for silver, attracting “ancillary” buying among precious metal investors.

What It Means for Investors

With silver prices poised to test — and possibly exceed — historical highs, investors may see:

• Opportunities in physical silver, ETFs, and silver mining stocks
• Increased volatility, with wide trading ranges expected
• Potential for short-term profits, especially if geopolitical tensions persist
• Safe-haven demand likely to stay strong amid global uncertainty

Investors looking to diversify portfolios may find silver an attractive option, especially in conjunction with gold holdings.

Sources: (Investing.com, Reuters.com)