The global silver market is on track for its sixth consecutive annual supply deficit in 2026, according to the Silver Institute's World Silver Survey, produced with consultancy Metals Focus and released April 15. The survey projects a shortfall of 46.3 million ounces in 2026, widening from a 40.3 million ounce deficit in 2025.

The persistence of the deficit reflects demand outrunning available supply over multiple years. At the same time, the composition of demand is shifting. Sustained high prices are prompting solar panel manufacturers and jewelry fabricators to reduce the amount of silver they use, trimming industrial consumption even as the overall market remains undersupplied.

Investment demand is moving in the opposite direction. Global coin and net bar demand rose 14% in 2025, and exchange-traded products recorded net inflows of 68.3 million ounces. The Institute expects that momentum to carry into 2026, forecasting an 18% increase in physical investment to the highest level since 2022.

Price action has reinforced investor interest. A mix of US policy uncertainty and strong retail buying pushed silver above $121 per ounce on January 29, an all-time high. The data describes a market where structural undersupply and rising investment demand are offsetting softer industrial and jewelry use, a balance that analysts say leaves silver prone to sharp swings rather than steady gains.

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