The silver market is on track for a sixth consecutive annual supply deficit in 2026, widening to 46.3 million ounces from the 40.3 million ounce shortfall recorded in 2025, according to the World Silver Survey 2026 published by The Silver Institute.

Cumulative drawdown from above-ground stocks has reached 762.1 million ounces since 2021. That figure represents the amount of metal pulled from existing inventories to cover the gap between annual production and annual consumption across the six-year period.

Supply expanded modestly in 2025. Mine production rose 3 percent to 846.6 million ounces, and recycling climbed to a twelve-year high of 197.6 million ounces. Global mine production is expected to remain roughly flat during 2026.

Demand eased 2 percent in 2025 to 1.13 billion ounces and is forecast to decline another 2 percent to 1.11 billion ounces in 2026. Industrial consumption fell 3 percent to 657.4 million ounces in 2025 and is projected to fall a further 3 percent to 639.6 million ounces this year.

Investment demand moved in the opposite direction. Global coin and net bar demand rose 14 percent in 2025, and exchange traded products recorded net inflows of 68.3 million ounces. The Institute forecasts an 18 percent increase in physical investment during 2026, which would mark the highest level since 2022.

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/