Silver Market Heads for Sixth Straight Deficit as Stocks Deplete
The global silver market is facing a sixth consecutive year of deficit in 2026, according to CLSA. The brokerage expects the silver deficit to widen to 46.3 million ounces this year from 40.3 million ounces in 2025. Mine production is expected to remain flat, while above-ground inventories have been under sustained pressure.
CLSA estimates that around 762.1 million ounces of above-ground silver stocks have been drawn down since 2021, nearly equal to an entire year's global mine production. This highlights the extent to which the market has relied on inventories to meet demand.
Silver sits within CLSA's broader 'scarcity trade' thesis, where several industrial metals are entering a period of structural scarcity rather than facing merely cyclical price movements. The brokerage flags shortages of copper, zinc, lithium, alumina, rare earths, tungsten and uranium, arguing that supply additions are struggling to keep pace with demand.
For Indian investors, the silver theme has a direct listed-company link through Hindustan Zinc, which is majority-owned by Vedanta. The company produces silver alongside zinc and lead, making movements in the precious metal an important earnings variable for the company.