Global silver supply is forecast to reach 1.05 billion ounces in 2026, a rise of 1.5 percent and the highest total in a decade, according to the Silver Institute's annual market outlook prepared with research from Metals Focus.

Mine production accounts for the bulk of that figure at a projected 820 million ounces, up 1 percent on stronger output from existing operations and recently commissioned projects. Primary silver mines hold roughly flat year over year and supply 28 percent of all silver pulled from the ground, with the balance arriving as a by-product of gold, copper, lead and zinc operations.

Recycling supplies the rest of the increase. Scrap volumes are projected to climb 7 percent and pass 200 million ounces for the first time since 2012, led by silverware as owners sell into elevated prices.

On the demand side, industrial fabrication is forecast to fall 2 percent to a four-year low near 650 million ounces. Thrifting and substitution in the photovoltaic sector drive most of that decline, partly offset by consumption tied to data centers, artificial intelligence hardware and automotive electronics. Jewelry demand is projected to drop more than 9 percent to 178 million ounces, its weakest reading since 2020, while physical investment moves the other way with a 20 percent gain to a three-year high of 227 million ounces.

The arithmetic still leaves a shortfall. The Silver Institute expects the market to finish 2026 short by 67 million ounces, the sixth consecutive annual deficit, with the gap covered by bullion drawn from above-ground inventories.

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/