What's Happening?
The Silver Institute has projected that global silver demand will remain steady in 2026, with retail investment gains offsetting declines in industrial, jewelry, and silverware demand. Silver prices have risen significantly, driven by retail buying, and are currently around $81 per troy ounce. The market is expected to face a structural deficit for the sixth consecutive year, with a shortfall of 67 million troy ounces. Industrial silver fabrication is forecasted to decline due to thrifting and substitution in the photovoltaic sector. Jewelry demand is projected to fall due to high prices, particularly in India, while silverware demand is also expected to decrease. In contrast, physical investment is anticipated to rise by 20%, driven by Western
demand.
Why It's Important?
The steady demand for silver, despite declines in certain sectors, underscores the metal's critical role in various industries, including electronics and renewable energy. The anticipated rise in physical investment highlights silver's appeal as a safe-haven asset amid economic uncertainties. The structural deficit in the silver market could lead to increased prices, impacting industries reliant on silver for manufacturing. The projected increase in global silver supply, driven by higher mine production and recycling, may help mitigate some of the supply constraints, but the overall market dynamics suggest continued volatility.
