Silver Price Rebound Masks Ongoing Supply Deficit

Silver's price rebounded last week, closing at $58.49 per ounce on Friday, after a four percent weekly gain that snapped a prolonged losing streak.

The metal still lingers near its January peak of $121 and investors are uncertain whether this is the start of a genuine recovery or merely a pause before further losses.

The rally comes as geopolitical tensions escalate between the US and Iran, driving capital toward safe-haven assets like silver, which serves both as an industrial metal and a store of value.

A structural deficit in silver supply remains unchanged, with the Silver Institute projecting 2026 will mark the sixth consecutive year of deficit, resulting from a gap between mine supply and total demand estimated at 46.3 million ounces.