The Silver Institute stated in a latest update that the underlying drivers that supported silver throughout much of 2025 have remained firmly in place so far this year. These include tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty, and concerns over the Federal Reserve’s independence. In addition, silver’s underlying supply-demand fundamentals remain supportive. The silver market is expected to remain in deficit (total supply less demand) for a sixth consecutive year in 2026.

Global silver demand is expected to remain largely unchanged in 2026, as healthy gains in retail investment are likely to offset most of the losses across other key demand segments, notably in jewellery, silverware, and industrial demand.

Silver industrial fabrication is forecast to decline by 2 percent in 2026, to a four-year low of around 650 million ounces (Moz.) As was seen last year, the weakness will be underpinned by developments in the photovoltaic (PV) sector. Several silver applications continue to benefit from favourable structural growth trends.

However, Silver Jewellery demand is projected to fall for the second consecutive year, declining by over 9 percent in 2026 to 178 Moz, its lowest level since 2020. As in 2025, record-high prices are expected to curtail consumption across most key markets, led by India. Silverware demand is expected to contract more sharply, declining by approximately 17 percent in 2026. Most losses are forecast to occur in India.

By contrast, physical investment is forecast to rise by 20 percent to a three-year high of 227 Moz. After three consecutive years of decline, Western physical investment is expected to recover in 2026, as silver’s exceptional price performance and ongoing macroeconomic uncertainty rekindle investor interest. Investment demand in India is also likely to build on last year’s substantial gains.

Total global silver supply is forecast to increase by 1.5 percent in 2026, reaching a decade high of 1.05 billion ounces. In 2026, silver mine production is expected to increase by 1% to 820 Moz, driven by stronger output from existing operations and recently commissioned projects. In Mexico, the most growth will come from primary silver mines. By-product silver from primary gold mines is forecast to grow in 2026. Silver recycling is projected to rise by 7 percent, with volumes surpassing 200 Moz for the first time since 2012.

Silver Institute noted that the global silver market is expected to remain in deficit in 2026 for the sixth consecutive year, at a noteworthy 67 Moz. It says that the global silver market trends will continue to rely on the release of bullion from above-ground inventories, adding pressure to an already tight physical market.

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