Silver Supply Deficit Worsens Amid Structural Rigidity

The silver market is facing a severe supply deficit, with a projected shortfall of approximately 46.3 million ounces in 2026, according to Metals Focus projections cited by the Silver Institute.

This structural rigidity is due to the fact that about 70% of global silver production comes from co-product mining, where silver is extracted alongside copper, zinc, and lead. When the economics of these primary metals deteriorate, silver output contracts regardless of prices.

COMEX silver deliveries have exceeded 37 million ounces in July 2026, highlighting the severity of this trend. While registered inventories are at multi-year lows, delivery volumes remain elevated relative to that depleted stock.