The global silver market is set to post its sixth consecutive annual supply deficit in 2026, with the shortfall projected at 46.3 million ounces, widening from a 40.3 million ounce deficit in 2025, according to the Silver Institute's World Silver Survey. The sustained imbalance has left the market exposed to liquidity squeezes and price volatility.

On the supply side, total global silver supply is forecast to rise 1.5 percent to a decade high of 1.05 billion ounces, with mine production up about 1 percent to 820 million ounces. The modest gain is not enough to close the structural gap created by years of deficits.

Demand is shifting in composition. Overall demand is expected to hold roughly steady as gains in retail investment offset declines elsewhere. Jewelry fabrication fell 8 percent in 2025 and is projected to drop a further 16 percent in 2026 to a five year low of 159.4 million ounces, while silverware demand is slated to fall 20 percent.

Investment is the standout. The Silver Institute expects physical investment to climb 18 percent in 2026 to its highest level since 2022, led by the United States, where retail demand is projected to rebound by 57 percent. The pattern shows investors absorbing supply even as some traditional industrial and decorative uses soften.

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/