The Silver Institute projects a sixth consecutive annual silver supply deficit in 2026, with its World Silver Survey estimating a shortfall of 215 million ounces, the largest on record. The persistent gap between demand and mine output has drawn down above-ground stocks and left the market exposed to price squeezes.

Demand is shifting in composition. Global jewelry fabrication fell 8 percent in 2025 and is projected to drop another 16 percent this year to a five-year low of 159.4 million ounces, while silverware demand is set to fall 20 percent. Investment demand is moving the other way. Coin and bar demand rose 14 percent in 2025, and the Institute forecasts an 18 percent increase in physical investment in 2026 to the highest level since 2022.

Supply is rising modestly. Total global silver supply is forecast to grow 1.5 percent to a decade high of 1.05 billion ounces, with mine production up about 1 percent to 820 million ounces on stronger output from existing operations and newly commissioned projects. Even so, the increase falls short of demand.

The cumulative strain is visible in inventories. Since 2021, above-ground stocks have been drawn down by 762 million ounces, a depletion that analysts flag as a structural constraint. Individual annual deficits may be manageable, but the running total tightens the market and raises the risk of sharp price moves when demand surges.

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/