The global silver market is on track for a sixth consecutive annual supply deficit in 2026, with the Silver Institute's World Silver Survey projecting a 46.3 million ounce shortfall, widening from a 40.3 million ounce gap in 2025. The run of deficits has steadily drawn down above-ground stocks.

Supply is rising but not fast enough to close the gap. Total global silver supply is forecast to increase 1.5% in 2026 to a decade high of 1.05 billion ounces, with mine production up 1% to 820 million ounces on stronger output from existing operations and newly commissioned projects.

Demand patterns are shifting between sectors. Industrial demand is expected to fall about 3% in 2026 to 639.6 million ounces, and jewelry fabrication is projected to drop 16% to a five-year low of 159.4 million ounces. Working against those declines, the Institute forecasts an 18% jump in physical investment to the highest level since 2022, as investors return to the metal.

The cumulative strain shows in the stock data. The drawdown from above-ground stocks has reached 762.1 million ounces since 2021, which is why even a modest annual gap now pressures physical supply. The Institute noted that the market has clearly entered an era of reduced stocks.

That thinning inventory leaves the market more exposed to price squeezes, with analysts warning of sharp volatility rather than steady gains. The structural deficit has become a defining feature of the silver market heading deeper into the decade.

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/