HSBC Warns: Silver 'Overvalued', Sharp Fluctuations Expected in 2026

• HSBC's Metals Outlook report states silver prices are currently 'overvalued' after excellent returns in 2025.
• Global silver demand reached 1.2 billion ounces in 2025, driven by investment and industrial use in clean energy (solar panels, electronics, EVs).
• HSBC predicts a slowdown in demand for 2026 due to slower solar capacity additions and cooling global manufacturing.
• Silver mine production is expected to increase to 1.05 billion ounces in 2026, with higher output from Latin America and by-products.
• The bank warns of high volatility and potential sharp price declines in 2026 due to rising supply, weakening demand, and economic shocks.

Why It Matters: HSBC warns investors that silver is overvalued, anticipating sharp price fluctuations and potential correction in 2026.