The global silver market is on track for a sixth consecutive annual deficit in 2026, according to the World Silver Survey 2026 published by the Silver Institute and Metals Focus. The report projects a shortfall of 46.3 million troy ounces, as total demand continues to outpace total supply for another year.

Industrial fabrication, silver's largest demand category, is forecast to decline by 2 percent in 2026 to a four year low near 650 million ounces. The softness stems largely from the photovoltaic sector, where ongoing thrifting and substitution away from silver are expected to reduce solar related demand even as global installations keep rising. Offsetting some of that decline, expanding data center construction, artificial intelligence hardware, and automotive applications are projected to support silver use across other industrial segments.

Total global silver demand is expected to remain broadly unchanged for the year, as healthy gains in retail investment offset most of the losses in jewelry, silverware, and industrial fabrication. Investment demand has become an increasingly important pillar of the market during a period of elevated prices.

The persistent gap between supply and demand has steadily eroded available inventory. Since 2021, the market has drawn down a cumulative 762 million troy ounces from above ground stocks to cover the shortfall, a depletion that analysts say leaves the market more exposed to price squeezes and volatility.

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/