HSBC expects limited silver gains in 2027 as supply grows and demand eases, The Economic Times reported Monday, while its deficit estimates diverge sharply from an industry survey.
The difference is pronounced for 2026. The Economic Times attributed a five million-ounce deficit forecast to HSBC, compared with the Silver Institute’s forecast of 46.3 million ounces. The outlet also attributed to HSBC a 140 million-ounce deficit estimate for 2025 and a 12 million-ounce forecast for 2027. The institute recorded a 40.3 million-ounce deficit for 2025. The accounts do not explain the gap or establish whether the two organizations calculate the market balance on the same basis.
Kitco listed a $54.05 spot bid per troy ounce at 4:05 a.m. ET on Oct. 26. That was about 56% below Kitco’s stated Jan. 29 high of $121.67. The U.S. Geological Survey reported a $121.15 high for Jan. 29 in a separate price series.
The Silver Institute said mine production rose 3% to 846.6 million ounces in 2025, while recycling increased 2% to 197.6 million ounces. Total demand fell 2% to 1.13 billion ounces, including a 3% decline in industrial demand to 657.4 million ounces.
In its April outlook, the institute forecast flat mine production and a further 2% drop in total demand to 1.11 billion ounces for 2026. It still projected a sixth consecutive annual deficit. Within that forecast, weaker consumption would not be enough to close the supply gap.
The Economic Times reported that HSBC expects higher mine output and more recycled silver in 2027, alongside weaker industrial and jewelry demand. It said the bank sees a stronger U.S. dollar and high yields weighing on silver, with gold offering some support. HSBC expects prices to stabilize before making modest gains and views a return to $100 an ounce as unlikely unless tariff concerns intensify again, according to the outlet.
The Silver Institute said intense competition and higher silver costs have led photovoltaic manufacturers to look for ways to use less of the metal or replace it with other materials.
