Silver Recycling Puts Pressure on Prices Amid Ongoing Supply Deficit
Rising silver prices have led to an increase in recycling, with households and businesses selling old jewelry, silverware, and industrial scrap. This influx of recycled metal can put pressure on prices, especially after a strong rally.
However, the market is still facing a supply deficit, with demand outpacing mine production and recycling combined. In 2025, global silver recycling reached 197.6 million ounces, its highest level in 13 years, while total demand was 1.13 billion ounces.
The Silver Institute and Metals Focus expect recycling to rise another 7 percent to 211.3 million ounces in 2026, but mine production is likely to remain flat, leading to a widening supply deficit of 46.3 million ounces.
Recycling can slow down rallies and increase short-term price volatility, but it's unlikely to push silver prices much lower due to the ongoing supply shortage.