The global silver market is on track to record its sixth consecutive annual supply deficit in 2026, according to Silver Institute data. Industrial demand, led by photovoltaic solar panel manufacturing and semiconductor production, has grown faster than new mine supply can offset, creating a structural gap between consumption and output.

Industrial applications now account for more than half of total annual silver demand. The solar sector alone consumes more than 20% of annual global silver production, a share that has more than doubled over the past decade as the cost of solar installations has declined and deployment has accelerated. Semiconductor manufacturing is the second fastest-growing industrial use category.

Silver hit an all-time high of $121.62 per troy ounce on January 29, 2026, the highest price since the 1980 Hunt Brothers episode. As of June 12, 2026, spot silver traded near $67 per troy ounce following a five-week pullback driven by rising interest rate expectations in the US and Europe.

US primary silver production is dominated by Hecla Mining, which accounts for more than 40% of domestic output from its Greens Creek and Lucky Friday mines. First Majestic Silver reported a 26% year-over-year increase in silver production for Q1 2026 alongside record revenues of $477 million.

Citigroup has published a price target of $110 per ounce for the second half of 2026, citing the ongoing physical supply deficit and accelerating industrial consumption as the key drivers for a recovery from current levels.

Source: Silver Institute -- https://www.silverinstitute.org