Silver Market Faces Sixth Consecutive Deficit as Demand Surpasses Supply
The global silver market is expected to continue its structural supply deficit in 2026, with demand outpacing available supply for the sixth consecutive year. According to the Silver Institute, total demand is forecast at 1,112.6 million ounces, exceeding the projected 1,066.4 million ounces of supply, resulting in a potential 46.3-million-ounce deficit.
The silver market's imbalance is driven by strong industrial growth, particularly in solar photovoltaics, which accounts for a significant portion of silver consumption. The World Silver Survey 2026 notes that the sector has seen a substantial increase in demand, with an estimated 151 million ounces consumed in 2026. This trend is expected to continue, driven by the growing adoption of renewable energy sources.
The investment demand for silver also remains strong, with coin and net bar demand forecast to rise 18% to 257.6 million ounces in 2026. The Silver Institute attributes this growth to renewed interest in physical silver investment, driven by geopolitical uncertainty and macroeconomic conditions.