Silver Market Sees Sixth Consecutive Annual Deficit Looming

The silver market is facing its sixth consecutive annual deficit in 2026, with a projected shortfall of about 46 million ounces. Global mine output has not kept pace with demand, which continues to be driven by industrial consumption from electronics and advanced manufacturing.

Recent price movements have attracted new money into the trade, with managed-money traders holding a net long position of roughly 11,000 contracts. Open interest rose more than 3,000 contracts to about 115,000 through mid-August.

The market is now facing its next test at the 200-day moving average near $71.95 and the 50% level at $72.08, with gold having already cleared its own 200-day moving average and reaching a three-month high.