The Silver Institute's 2026 market outlook projects the global silver market will post a deficit for the sixth consecutive year, with total supply falling short of demand by an estimated 67 million ounces. The shortfall comes even as total silver supply is forecast to climb 1.5 percent this year to a decade-high 1.05 billion ounces.

Mine production is expected to grow a modest 1 percent to 820 million ounces, with the largest gains coming from primary silver operations in Mexico, an expanding Chinese polymetallic mine, and newly commissioned projects in Canada and Morocco. Recycled silver supply is projected to rise 7 percent, pushing volumes above 200 million ounces for the first time since 2012 as consumers cash in on elevated prices.

On the demand side, physical investment is forecast to jump 20 percent to a three-year high of 227 million ounces, as silver's exceptional 2025 and 2026 price performance and ongoing macroeconomic uncertainty draw renewed interest from Western and Indian buyers alike. That strength is offsetting declines elsewhere: jewelry demand is projected to fall more than 9 percent to 178 million ounces, its lowest level since 2020, while industrial fabrication is expected to slip 2 percent to a four-year low near 650 million ounces as thrifting and substitution continue to chip away at solar-sector demand.

The report notes that data center growth, AI-related technology, and automotive applications are helping offset some of the industrial softness tied to photovoltaics.

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/