Global silver supply is projected to reach a decade high of 1.05 billion ounces in 2026, according to the Silver Institute's annual market outlook, marking a 1.5 percent increase from the prior year. Mine production is expected to grow by 1 percent to 820 million ounces, with gains led by expanded output in Mexico, Canada, and Morocco.

Despite the higher supply, the silver market is forecast to post a deficit of 67 million ounces in 2026, the sixth consecutive year that demand has outpaced supply. The persistent shortfall has kept pressure on above ground inventories and contributed to continued price volatility throughout the year.

Industrial demand, which accounts for the largest share of silver consumption, is expected to decline by 2 percent to around 650 million ounces, a four year low. The pullback is tied mainly to reduced silver use in photovoltaic manufacturing as solar producers thrift and substitute away from the metal at current price levels. Growth in data centers, artificial intelligence hardware, and automotive electronics is helping offset some of that decline, though not enough to fully close the gap.

Physical investment demand is bucking the broader slowdown, forecast to rise 20 percent to a three year high of 227 million ounces as investors respond to elevated prices and macroeconomic uncertainty. Mexico remains the world's largest silver producer, mining an estimated 173 million ounces in 2025, about one fifth of global output, followed by Peru and China, according to data compiled from the Silver Institute's World Silver Survey.