The global silver market is projected to post a 67 million ounce deficit in 2026, marking the sixth consecutive year that demand has outpaced supply, according to the Silver Institute'''s 2026 market outlook, produced with research firm Metals Focus. The persistent shortfall has been a central driver behind silver'''s sharp price gains over the past two years.

Total global silver supply is forecast to rise 1.5 percent in 2026, reaching a decade-high 1.05 billion ounces. Mine production is expected to grow 1 percent to 820 million ounces, with gains led by Mexico'''s primary silver mines, higher output from China'''s Jiama polymetallic mine, and newly commissioned projects in Canada and Morocco.

Physical investment demand, coins, bars, and similar products, is forecast to jump 20 percent to a three-year high of 227 million ounces. Western buyers are expected to return to the market after three straight years of declining physical investment, as silver'''s price performance and macroeconomic uncertainty rekindle investor interest. Global exchange-traded product holdings stood at an estimated 1.31 billion ounces.

Silver recycling is projected to climb 7 percent in 2026, pushing total recycled volume above 200 million ounces for the first time since 2012, as consumers cash in silverware and other scrap at elevated prices.

On the demand side, jewelry consumption is expected to fall more than 9 percent to 178 million ounces, its lowest level since 2020, as record prices curb purchases in India and other major markets. Industrial fabrication is forecast to slip 2 percent to a four-year low near 650 million ounces, largely due to continued thrifting of silver in solar panel manufacturing, even as demand from data centers and electric vehicles partially offsets that decline.

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