The silver market is expected to run a deficit for a sixth consecutive year in 2026, according to the Silver Institute's annual outlook prepared with research consultancy Metals Focus. Total global supply is forecast to rise 1.5% to a decade high of 1.05 billion ounces, and demand is still projected to exceed it.

Mine production is forecast to increase 1% to 820 million ounces, driven by stronger output at existing operations and recently commissioned projects. Growth in Mexico comes mainly from primary silver mines. Canadian gains are expected from newly commissioned projects along with existing primary gold and silver operations, most notably Hecla's Keno Hill and New Gold's New Afton, which Coeur Mining is in the process of acquiring.

On the demand side, industrial fabrication is forecast to fall 2% to a four year low near 650 million ounces. Photovoltaic offtake accounts for most of the decline as manufacturers thrift and substitute away from silver even while global solar installations keep rising. Data center construction, artificial intelligence related technologies, and the automotive sector are expected to absorb part of that loss across other industrial end uses.

Jewelry demand is projected to drop more than 9% to 178 million ounces, the lowest since 2020, with India leading the decline and China the exception. Silverware demand is forecast to contract about 17%. Physical investment moves the other way, projected to rise 20% to a three year high of 227 million ounces as Western buyers return after three years of decline. Silver breached $100 an ounce for the first time in January 2026, pushing the gold to silver ratio below 50.

Source: The Silver Institute - https://silverinstitute.org/global-silver-investment-to-remain-strong-in-2026-against-the-backdrop-of-a-sixth-consecutive-annual-market-deficit/