New Delhi, October 26, 2026 (Yes Punjab News)
Silver prices are trading near equilibrium levels and could receive support from a recovery in investor demand, but any rally is likely to be constrained by a strong US dollar and rising supply, according to a report by HSBC Global Investment Research.
The report said the silver market recorded a deficit of 140 million ounces in 2025. The shortfall is projected to narrow sharply to 5 million ounces in 2026 before widening slightly to 12 million ounces in 2027.
“Moderating deficits help explain our view that prices are near equilibrium levels and may be supportive but do not augur for robust rallies,” the report said.
Above-ground stocks and increased recycling could eventually limit substantial price gains and weigh on silver prices over the longer term, it added.
Silver touched a record high of $121 per ounce on January 29, 2026, driven by record gold prices, tight supplies, and concerns over tariffs, geopolitical tensions and economic uncertainty, which encouraged safe-haven buying.
However, the conflict in the Middle East triggered a rush towards the US dollar, while elevated oil prices fuelled concerns about tighter monetary policy as equity markets declined.
“Gold prices will likely remain influential, and we are moderately positive on bullion, which should help sustain silver,” the report said.
HSBC forecast that a renewed focus on tariff concerns could trigger further rallies in silver prices. However, industrial and jewellery demand is expected to remain weak.
The report also noted that lower ore grades and mine closures during the year would be largely offset by new mining projects and capacity expansions, potentially limiting the impact of supply constraints.
Separately, a recent report estimated that silver exchange-traded funds (ETFs) held assets worth around Rs 85,000 crore to Rs 86,000 crore as of August. It also highlighted the growing financialisation of gold, the expansion of commodity derivatives markets and rising structural demand for industrial metals such as copper and aluminium.
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