The global silver market is forecast to register its sixth consecutive annual supply deficit in 2026, with total demand expected to exceed supply by approximately 215 million ounces, the largest deficit in the series, according to the Silver Institute. The cumulative shortfall between 2021 and 2025 reached an estimated 900 million ounces, drawing down above-ground bullion inventories throughout the period.

Industrial fabrication is projected to edge down approximately 2 percent to around 650 million ounces, a four-year low, primarily due to reduced demand from the photovoltaic sector. That decline is partially offset by growing silver consumption from data centers, AI hardware, and automotive electronics, which are sustaining demand across multiple industrial end-use categories.

Retail silver investment demand is projected to rise as investors respond to the deficit dynamic and price levels that moved above $80 per ounce in May 2026 after reaching an all-time high of $121.64 per ounce in January 2026. Overall silver demand for 2026 is expected to remain broadly stable year-over-year as investment gains offset industrial segment softness.

Industrial uses account for approximately 60 percent of annual silver consumption, with electronics alone representing approximately 445 million ounces of annual demand. Analysts have cautioned that despite the persistent deficit, silver price behavior is more likely to reflect sharp volatility than linear price appreciation.

Source: Silver Institute -- https://silverinstitute.org/global-silver-investment-to-remain-strong-in-2026-against-the-backdrop-of-a-sixth-consecutive-annual-market-deficit/