Imbalance in Supply and Demand and Rising Risk Aversion Drive Silver Price Forecast to $68

Supply Constraints Fuel Surge in Silver Prices

HSBC's latest report highlights a sustained tightness in the physical silver market, alongside surging investor demand for precious metals, driving a significant upward revision in silver price forecasts. Analysts predict that silver shortages may persist until 2026.

Escalating Geopolitical and Policy Uncertainties

Rising geopolitical risks and instability in global economic policies are boosting risk-aversion, further underpinning the silver market. Lower interest rates by the Federal Reserve and a weakening US dollar also support silver prices.

• Silver prices expected to reach $68.25 per ounce by 2026
• Forecasts suggest a gradual decline to $57 and $49 by 2027 and 2028

Market Dynamics and Historical Trends

Last year, U.S. tariff policies triggered price volatility, leading to the transfer of tens of millions of ounces of silver from London to New York. The tight supply situation in London and extreme premiums in futures markets highlight current delivery challenges.