Silver Deficit Looms as Prices Soar

The silver market is bracing for its sixth consecutive year of deficits in 2026, according to the World Silver Survey by Metals Focus. The deficit could increase by 15% in 2026, with a net shortfall projected to rise from 40.3 million troy ounces to 46.3 million.

The silver price surged 134% in 2025, driven by a 'silver squeeze' that began in October of that year. This squeeze was caused by declining silver inventories, withdrawals from the London silver market, and massive demand from ETPs (Exchange Traded Products).

Investor demand for physical silver is increasing, with global demand rising 14% in 2025. A further increase of 18% is expected in 2026.