Silver: HSBC hikes price forecasts, sees record high soon on gold spillover

Published 08/10/2025, 06:44
© Reuters.

Investing.com-- HSBC raised its price forecasts on silver and said the metal could test its 2011 record high soon, as a rally in gold spills over into other precious metals with safe haven appeal. 

HSBC hiked its 2025 average silver price forecast to $38.05 an ounce and its 2026 average price forecast to $44.50/oz, from $35.14/oz and $33.96/oz, respectively.

HSBC sees silver ending 2025 at $49.0/oz and set an end-2026 price of $41.50/oz. 

But the bank expects silver to trend substantially higher in the near-term and in the first half of 2026, amid continued support from a safe haven rally that drove gold to fresh records.

“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,” HSBC analysts wrote in a note dated October 7.

“We look for a wide USD45.00- 53.00/oz range for the remainder of 2025 and a wide USD40.00-55.00/oz range next year.” 

HSBC noted that physical silver supplies remained muted, and that investment-driven demand looked robust despite a sharp run-up in prices this year. Spot silver traded at $48.8255 on Wednesday, and was up nearly 65% so far in 2025.

This compares to a nearly 55% year-to-date spike in gold, which crossed $4,000/oz for the first time ever on Wednesday. 

HSBC said silver’s rally was largely tied to gold, in that their inherent similarities make silver track gold at a delayed pace. “Gains in gold attract ancillary buying in silver,” HSBC analysts said.

They noted that tightness in physical silver markets in London had also driven up prices this year, especially as fears of U.S. tariffs drove large amounts of physical gold and silver to U.S. markets in the first and second quarters. 

 

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