The global silver market is on track for its sixth consecutive annual deficit in 2026, according to the Silver Institute. The projected shortfall reaches 46.3 million ounces, widening from a 40.3 million ounce deficit in 2025. Since 2021, the market has drawn down a cumulative 762 million troy ounces from above ground stocks to cover the gap between supply and demand.

Investment demand remains a central force. Physical investment is forecast to rise about 20 percent to a three year high near 227 million ounces, as Western buyers return amid strong price performance and macroeconomic uncertainty. Coin and bar demand is projected to increase 18 percent, supported by a recovery in US purchases, even as high prices strain retail liquidity at times.

Industrial and jewelry demand tell a different story. Total demand is expected to slip about 2 percent in 2026, with industrial silver fabrication forecast to fall 3 percent to a four year low as elevated prices weigh on some manufacturing uses. The figures describe a market pulled between resilient investor appetite and softening industrial consumption, held in persistent deficit by years of supply that has lagged demand. With inventories thinned by repeated shortfalls, the data suggests the market remains sensitive to swings in investment flows.

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