The global silver market is on track for a sixth consecutive annual deficit in 2026, with the World Silver Survey 2026 projecting a shortfall of 46.3 million troy ounces, according to the Silver Institute and Metals Focus. The persistent imbalance reflects demand that has exceeded total supply every year since 2021.

The cumulative drawdown has been substantial. Above-ground silver stocks have fallen by 762 million troy ounces since 2021 as the market pulled metal from existing inventories to cover the annual gaps. The Institute notes the deficit is widening even though total demand is forecast to fall 2 percent in 2026, because total supply is projected to decline at the same pace, leaving the shortfall intact.

Demand is shifting between categories. Industrial use faces some headwinds, and global jewelry fabrication fell 8 percent in 2025 before an expected further 16 percent drop this year to a five-year low of 159.4 million ounces. Retail investment is moving the other way. The Institute forecasts physical investment demand will rise 18 percent in 2026 to its highest level since 2022, as buyers add coins and bars amid the tight supply picture.

The structural deficit has become a defining feature of the silver market. With inventories thinner after years of drawdown, the metal is more exposed to volatility, and analysts have cautioned that price moves in 2026 may come in sharp swings rather than a steady climb. The data frames a market where the supply cushion that once absorbed shortfalls has narrowed considerably.

Source: Silver Institute - https://silverinstitute.org/global-silver-investment-to-remain-strong-in-2026-against-the-backdrop-of-a-sixth-consecutive-annual-market-deficit/