The global silver market will face a structural deficit for the sixth consecutive year in 2026. Demand is projected to exceed supply by 46.3 million ounces, according to the Silver Institute. Overall demand is forecast to decline by 2% as high prices impact industrial and jewelry consumption.
Solar panel manufacturers are reducing silver usage, causing industrial demand to soften. Investment demand for silver coins and bars provides a counterbalance, with an expected 18% jump in 2026. This follows a 14% increase in investment demand during 2025. Investors are seeking safe-haven assets due to geopolitical and macroeconomic uncertainty.
Global mine production is expected to remain flat this year. Supply growth remains limited across the sector.