Their previous forecast bump came in August, in expecting silver prices to average $35.14 per ounce this year. That is already a marked revision higher from the forecast before that of $30.28 per ounce. But now, HSBC is seeing silver prices to average $38.05 per ounce with the year-end forecast target of $49 per ounce.
Looking to next year, the firm forecasts silver prices to average $44.50 per ounce – up from the previous forecast of $33.96 per ounce. The year-end target for 2026 though is for silver to drop to $41.50 per ounce.
That being said, HSBC is looking for an even higher high next year for silver in noting that: “The silver market stands on the cusp of the record high of nearly $50/oz set in May 2011, but is likely to surpass that level in the near-term. We look for a wide $45.00- 53.00/oz range for the remainder of 2025 and a wide $40.00-55.00/oz range next year.”
Before adding that the gold rally will continue to benefit silver prices heading into the year ahead: “Gains in gold attract ancillary buying in silver.”
It’s an argument that they are doubling down on after their August note mentioned that: “The latest rally is due more to silver’s relationship with gold than to underlying fundamentals.”
Further noting at the time that as gold pushes to fresh record highs, it is exerting a “strong gravitational pull” on silver prices as well.
This article was written by Justin Low at investinglive.com.