The Silver Institute's World Silver Survey 2026 projects a global silver market deficit of 215 million ounces this year, the largest shortfall on record and the sixth consecutive annual deficit. The 2025 gap measured 40.3 million ounces, narrower than 2024 on stronger mine supply and softer fabrication demand.

Total demand declined 2 percent last year to 1.13 billion ounces, with a 14 percent increase in coin and bar purchases offsetting much of the weakness across other segments. Demand is forecast to fall a further 2 percent this year to 1.11 billion ounces.

Industrial consumption reversed after four years of growth, declining 3 percent to 657.4 million ounces in 2025, with a further 3 percent decline projected. Photovoltaic offtake accounts for most of the reduction as solar manufacturers thrift silver loadings per cell. Applications tied to artificial intelligence data centers, high-speed transmission hardware, and automotive electronics continue to expand and partially offset the solar decline.

On the supply side, recycling rose 2 percent in 2025 to 197.6 million ounces, a 12-year high. Lead and zinc mines remained the largest single source of mined silver, though their share of global supply edged lower year over year. Output from gold operations increased 5 percent and from copper operations 6 percent.

Investment demand provides the counterweight. Coin and bar demand is projected to rise 18 percent in 2026.

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