UK giant HSBC has lowered its average annual price prediction for silver in 2017. While HSBC had expected to see silver average around $19.25 per ounce, it has lowered the bar a little to $18.75. The reduction is only a temporary measure however, and HSBC expects the price to climb to $19.25 in 2018 and rise higher in 2019, to $19.50.
HSBC also noted that a resurgence in uncertainty on the part of investors, at least when it comes to geopolitical concerns, could boost the price of silver in 2017. That has prompted the bank to predict an overall range of $16 to $21.50 for silver through the course of the next year.
These predictions put forth by HSBC are based on “solid fundamentals” according to the firm, stating that they expect supply to decrease, while demand in the industrial and jewelry markets should increase. Their predictions take into account the current strength of gold as well as the potential for a tighter Fed policy in the New Year.
HSBC is also expecting a correction in the U.S. dollar against the Euro, which should support silver prices.