HSBC Warns Silver 'Overvalued,' Wild Swings Expected in 2026 After 2025 Gains

• HSBC flags silver as 'fundamentally overvalued' after significant returns in 2025, predicting high volatility and potential sharp corrections in 2026.
• Current silver prices are well above long-term fundamentals, despite strong investment and industrial demand from clean energy sectors in the past year.
• Demand growth is expected to slow in 2026 due to moderating solar capacity and cooling global manufacturing, while supply from Latin America and by-products will increase.
• This shift in supply-demand dynamics, combined with crowded investment positioning, makes silver highly sensitive to interest rates, USD, and risk sentiment.
• The bank warns that even small macroeconomic shocks could trigger outsized price swings and corrections, despite supportive long-term clean energy demand.

Why It Matters: HSBC warns silver is overvalued, expecting high volatility and corrections in 2026 despite 2025 gains.