Silver is entering its sixth consecutive year of supply deficit, with the 2026 shortfall projected near 46 million ounces, according to market analysis. The persistent gap between supply and demand has underpinned a volatile but elevated price environment.

The price record shows how sharp the moves have been. Silver hit an all time high of 121.64 dollars on January 29, gave back much of that gain through February and March, then consolidated between 70 and 80 dollars in April. A US and China agreement on a 90 day tariff reduction sparked a 6 percent single session jump on May 11, briefly clearing 87 dollars by mid May before prices settled back toward the mid 70s.

The volatility reflects competing forces. The structural supply deficit supports prices over time, while industrial demand has shown signs of strain after silver's rally of more than 140 percent last year. UBS noted that the run up is deterring some industrial buyers, a dynamic that can soften demand even as supply stays tight.

The data frames silver as a market with a firm supply floor and a demand side sensitive to price. A sixth year of deficit near 46 million ounces gives investors a structural anchor amid the swings.

Source: GoldSilver -- https://goldsilver.com/industry-news/article/silver-price-outlook-may-2026-stop-chasing-the-number/