The global silver market is forecast to run a deficit of 67 million ounces in 2026, the sixth consecutive annual shortfall, according to the Silver Institute market outlook prepared with research consultancy Metals Focus.

Total global supply is projected to rise 1.5% to a decade high of 1.05 billion ounces. Mine production is expected to increase 1% to 820 million ounces, with primary silver mines supplying 28% of mine output and volumes from base metal operations easing slightly year on year. Recycling is forecast to climb 7%, pushing scrap volumes above 200 million ounces for the first time since 2012.

Industrial fabrication is set to fall 2% to a four year low near 650 million ounces, weighed down by thrifting and substitution away from silver in photovoltaic manufacturing. Data center construction, artificial intelligence hardware and the automotive sector are expected to absorb part of that decline across other industrial end uses.

Physical investment carries the strongest projected gain, forecast to rise 20% to a three year high of 227 million ounces as Western coin and bar buying recovers after three consecutive years of contraction. Global exchange traded product holdings stood at an estimated 1.31 billion ounces at the time of the outlook.

The Silver Institute cited tight physical liquidity in the London market, US tariff concerns and a fundamental deficit in place since 2021 as conditions underpinning prices. Silver breached $100 an ounce for the first time in January 2026, and the gold to silver ratio fell below 50, a level last recorded in 2012.

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/