Silver Market Struggles with 46 Million-Ounce Deficit Amidst Mine Disruptions
The global silver market is struggling to meet demand due to a 46.3 million-ounce deficit, its sixth consecutive annual shortfall. According to the Silver Institute's World Silver Survey 2026, this deficit cannot be closed quickly by increasing supply through higher prices alone.
Three unrelated mine disruptions in Mexico, Peru, and Chile in August removed a combined 1.1 million ounces of production, equivalent to roughly 2.4% of the annual deficit. These disruptions were caused by factors such as community relations in Mexico, zinc and lead grades in Peru, and severe weather in Chile.
Americas Gold & Silver's Galena mine in Idaho is a potential source of alternative silver supply, thanks to higher throughput due to a modernized hoisting system and long-hole stoping. However, the company's Executive Vice President, Oliver Turner, notes that 70% of global silver output is produced as a byproduct of other metals.
The Silver Institute reports that silver prices are trading between $63.90 and $67.60 per ounce as of September 4, 2026, roughly 45% below its January 29 nominal all-time high near $121.70. The upcoming September Fed rate-hike pricing has moved to about 50%, with the August jobs report due on September 4 being a key indicator for the Fed's decision.