The Silver Institute stated on Tuesday that global silver demand is projected to remain stable in 2026, as increased retail investment is expected to largely offset declines in industrial, jewelry, and silverware demand. Silver prices are currently around $81 per ounce, having risen 14% year-to-date. Earlier, on January 29, silver prices reached a record high of $121.60 per ounce, driven by intense retail buying activity. In 2025, silver prices surged by as much as 147%. However, according to preliminary estimates from consultancy Metals Focus cited by the Institute, the silver market is facing its sixth consecutive year of structural deficit, with the current projected shortfall at 67 million ounces. This figure is expected to be updated in mid-April. The Institute did not disclose data for 2025. Last April, it had forecast a deficit of 117.6 million ounces for that year.

The Institute noted that industrial silver fabrication is expected to decline by 2% in 2026, falling to a four-year low of 650 million ounces. This drop is attributed to conservation efforts—reduced usage—and the substitution of silver with other materials in photovoltaic applications. Jewelry demand is projected to fall for the second consecutive year, decreasing by 9% to 178 million ounces, the lowest level since 2020, as record-high prices dampen demand in key markets such as India. Silverware demand is anticipated to drop by 17%, with the most significant decline occurring in India.

In contrast, physical investment is forecast to grow by 20%, reaching a three-year high of 227 million ounces, as demand in Western markets recovers after three consecutive years of decline. Total global silver supply is expected to increase by 1.5% to a ten-year high of 1.05 billion ounces. Mine production is projected to rise by 1% to 820 million ounces, while recycling volumes are set to grow by 7%, surpassing 200 million ounces for the first time since 2012.