The silver market is on track for a sixth consecutive annual supply deficit in 2026, according to the Silver Institute's World Silver Survey. The shortfall reflects years of demand running ahead of mine and recycled supply, and since 2021 above-ground stocks have been drawn down by 762 million troy ounces.

Industrial use, long the engine of silver demand, is softening at the margin. Industrial fabrication is forecast to decline about 3 percent in 2026 to 639.6 million ounces, pulled lower mainly by the photovoltaic sector as solar manufacturers reduce the silver content per panel and substitute other materials. Even so, the survey notes that expanding data centers, artificial intelligence technologies, and automotive electronics are supporting silver consumption across a range of industrial end uses, partly offsetting the solar decline.

Consumer categories are weaker. Jewelry demand is projected to fall more than 9 percent in 2026 to 178 million ounces, the lowest since 2020, while silverware demand is slated to drop 20 percent. Investment demand is moving the other way. Global coin and bar demand rose 14 percent in 2025, helped by a 33 percent jump in physical buying in India, and the Institute expects an 18 percent increase in physical investment in 2026 to the highest level since 2022.

The combination of persistent deficits, falling stockpiles, and resilient investment demand frames a market with tightening fundamentals even as individual demand segments diverge.

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/