Commodities
Silver Market Struggles With Structural Squeeze Amid Higher Interest Rates
The silver market is facing a structural squeeze due to supply shortages, but its price remains under pressure from higher interest rates and a resilient US economy.
A recent report by The Silver Institute and Metals Focus forecasts a global supply deficit of 46.3 million ounces for 2026, marking the sixth consecutive year of scarcity.
The supply-demand gap is expected to widen by roughly 15 percent year over year, but this has not shielded silver from a brutal correction.
Silver remains more than 50 percent below its January 2026 record high of $121.62 per ounce, a decline that has tested the patience of even the most committed bulls.