The global silver market is on track for a sixth consecutive annual supply deficit in 2026, according to the Silver Institute's World Silver Survey. The Institute projects a shortfall of about 46.3 million ounces for the year, widening from a 40.3 million ounce deficit in 2025 and extending an imbalance that has defined the market since 2021.

The cumulative drawdown is large. The Institute tallies a running deficit of roughly 762.1 million ounces since 2021, steadily drawing down above-ground stocks as consumption outpaces mine and recycling supply.

Industrial use anchors demand. Industrial applications account for more than half of total silver demand, spanning solar panels, electronics and electric vehicles. Industrial demand slipped 3 percent to 657.4 million ounces in 2025 as solar manufacturers reduced silver loadings faster than gains from AI infrastructure, autos and power-grid investment could offset.

The shifting demand mix has left investment buying as a larger share of the market even as the underlying deficit persists, a structural backdrop that analysts say leaves silver exposed to sharp price moves in either direction.

Source: The Silver Institute - https://silverinstitute.org/silver-supply-demand/