The global silver market is on track for a sixth consecutive annual deficit in 2026, according to the Silver Institute's World Silver Survey. The group projects a 46.3 million ounce shortfall, widening from a 40.3 million ounce deficit in 2025 and extending a multi-year run of supply falling short of demand.

Industrial use, the largest source of silver demand, is easing modestly. The Institute forecasts industrial demand to decline about 3 percent to 639.6 million ounces, a second straight annual drop and a four-year low. Even so, several applications continue to benefit from structural growth, including data center buildout, artificial intelligence technologies, and the automotive sector, all of which support silver consumption across a range of end uses.

Investment demand is moving in the opposite direction. Global coin and net bar demand rose 14 percent in 2025, and the Institute expects that momentum to accelerate, forecasting an 18 percent increase in physical investment in 2026 to the highest level since 2022. Strong retail and institutional buying has helped absorb available metal.

The cumulative drawdown tells the longer story. Since 2021, above-ground silver stocks have been reduced by 762 million troy ounces. That sustained depletion is what analysts point to when they warn of 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/