The silver market is on track for a sixth consecutive annual supply deficit in 2026, according to data from the Silver Institute's World Silver Survey, produced with consultancy Metals Focus. The survey reported a 40.3 million ounce shortfall in 2025, the fifth straight year that demand exceeded supply, and projects the imbalance to persist into 2026.

Supply is rising but not fast enough to close the gap. Total global silver supply is forecast to increase 1.5 percent in 2026 to a decade high of about 1.05 billion ounces, while silver mine production is expected to grow roughly 1 percent to around 820 million ounces. The persistent shortfall reflects demand that has outpaced mine output for years, leaving the market reliant on above-ground stocks to fill the difference.

Industrial consumption is the dominant force behind the deficit. Silver now sees more than half of its demand come from industrial applications, including solar panels, electronics, and electric vehicles, categories that have expanded rapidly. The survey notes that strong investment demand is expected to continue against this backdrop, and analysts warn that sustained deficits leave the market exposed to price squeezes and elevated volatility rather than steady, predictable gains.

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/