The global silver market is on track for a sixth consecutive annual deficit in 2026, with total demand set to exceed supply by 46.3 million ounces, according to Silver Institute figures. That shortfall widens from a 40.3 million ounce deficit in 2025, extending a structural imbalance that has defined the market since 2021.

Supply is rising modestly. Total global silver supply is forecast to increase 1.5 percent to a decade high of 1.05 billion ounces, with mine production up 1 percent to 820 million ounces on stronger output from existing operations and recently commissioned projects. Even so, that added supply falls short of demand.

The composition of demand is shifting sharply. Industrial demand is expected to decline 3 percent to 639.6 million ounces, a second straight annual drop, while jewelry demand is projected to fall more than 9 percent to 178 million ounces, the lowest level since 2020. Offsetting those declines, physical investment demand is forecast to rise 20 percent to 227 million ounces, a three-year high.

The swing toward investment buying, set against steady mine output and a persistent deficit, gives the 2026 silver market an unusual profile. Industrial and jewelry consumption are softening while investor appetite strengthens, and the sixth straight year of demand outpacing supply keeps the metal in a tight physical position heading through the year.

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