Physical silver investment is forecast to climb 18% in 2026 to its highest level since 2022, according to Silver Institute data reported by market analysts. The projected surge in demand for coins, bars, and exchange-traded products is a central force behind the metal's sustained supply deficit.

The numbers underscore how retail and investor flows have reshaped the market. Global coin and net bar demand rose 14% in 2025, and exchange-traded products recorded net inflows of 68.3 million ounces during the year. Analysts expect that pace to build in 2026 as investors seek exposure to a market running short of supply.

The demand strength sits against a backdrop of persistent shortfall. The market is entering its sixth consecutive year of deficit, projected at 46.3 million ounces in 2026, with cumulative drawdowns of 762 million troy ounces from above-ground stocks since 2021.

Mining company results reflect the favorable pricing environment earlier in the year. First Majestic Silver reported record first-quarter revenue of $477 million, up 95%, on higher production. The convergence of rising investment demand, constrained mine supply, and depleted inventories continues to expose the market to price squeezes, according to the Institute's analysis.

Source: Investing News Network -- https://investingnews.com/silver-institute-forecast/