The Silver Institute projects the global silver market will post a structural deficit for a sixth consecutive year in 2026, with supply falling roughly 67 million ounces short of demand, according to the trade group's outlook prepared with research firm Metals Focus. Total global silver supply is forecast to rise 1.5 percent this year to a decade high of 1.05 billion ounces, with mine production climbing 1 percent to 820 million ounces on stronger output from Mexico, Canada and Morocco.

Physical investment demand is expected to jump 20 percent to a three-year high of 227 million ounces as Western buyers return to the market after three straight years of pulling back, while global exchange-traded product holdings stood at an estimated 1.31 billion ounces. Silver recycling is forecast to climb 7 percent, pushing scrap supply above 200 million ounces for the first time since 2012 as consumers cash in on elevated prices.

Industrial fabrication, the largest single source of silver demand, is projected to slip 2 percent to a four-year low near 650 million ounces, with continued thrifting and substitution in solar panel manufacturing offsetting gains tied to data centers, artificial intelligence hardware and automotive uses. Jewelry demand is expected to fall more than 9 percent to its lowest level since 2020. Silver prices had already risen 11 percent for the year as of early February, after briefly topping $100 an ounce in January for the first time on record.

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/