The global silver market will record a 46.3 million ounce shortfall in 2026, widening from a 40.3 million ounce deficit in 2025 and marking the sixth consecutive year that demand outruns supply, according to the Silver Institute's World Silver Survey, produced with London-based consultancy Metals Focus.

Supply is growing, just not fast enough. Total global silver supply is forecast to rise 1.5% in 2026 to a decade high of 1.05 billion ounces, with mine production up 1% to 820 million ounces on stronger output from existing operations and recently commissioned projects.

The demand picture is split between weakening fabrication and surging investment. Total global demand fell 2% to 1,130.6 million ounces in 2025, and the Institute projects further softness this year. Industrial demand is expected to decline 3% in 2026 to 639.6 million ounces, jewelry fabrication is projected to plunge 16% to a five-year low of 159.4 million ounces, and silverware demand is slated to fall 20%.

Physical investment is the counterweight. The Institute forecasts an 18% increase in coin and bar buying in 2026, the highest level since 2022, as elevated prices and persistent deficits draw retail and institutional buyers. The cumulative supply shortfall since 2021 now approaches 800 million ounces.

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/