Silver prices experienced a dramatic rise in early 2025, peaking at $120 an ounce on January 28, before a significant drop of nearly 30% in a single day. Following this crash, silver prices have shown some recovery, with both spot silver and silver futures increasing by 10% over the past month to approximately $87 an ounce.
However, analysts at HSBC have expressed concerns that silver is 'fundamentally overvalued' and may not follow gold's price trajectory. They suggest that while gold prices will likely continue to influence silver, the gold:silver ratio may widen, potentially allowing silver prices to decline even if gold prices rise.
HSBC attributes silver's price sensitivity to its industrial uses, which include applications in electronics and renewable energy, making it more susceptible to economic cycles compared to gold. They predict that reduced industrial demand and increased supply could further pressure silver prices as 2026 progresses.
Conversely, some market analysts, like Philippe Gijsels from BNP Paribas Fortis, view the current downturn as a consolidation phase, anticipating a resumption of a long-term bull market for both metals, potentially leading to new all-time highs.
Suki Cooper from Standard Chartered also notes that an end to the U.S.-Israeli conflict with Iran could support both gold and silver prices, as the fundamental drivers for gold remain strong despite current liquidity needs overshadowing safe-haven demand