Here is the uncomfortable math at the heart of the silver market: the metal is trading above $75 an ounce — up more than 125% year-on-year — yet global mine supply is barely budging. That is because over 70% of the world's silver comes out of the ground as a by-product of copper, lead and zinc operations. When base metal miners cut capex or face grade declines, silver output falls with them regardless of the white metal's price.
The World Silver Survey 2026 from the Silver Institute puts the structural deficit at 46.3 million ounces for this year alone — the sixth consecutive annual shortfall. Since 2021, cumulative draws from above-ground inventories total roughly 762 million ounces, equivalent to about nine months of global mine production. Exchange inventories in London, New York and Shanghai have been trending lower since 2021, with COMEX registered stocks down approximately 40% from their peak.
New primary silver projects are rare and slow to develop. The few pure-play silver mines in operation face rising costs, permitting delays and longer lead times. Meanwhile, base metal miners — who control the bulk of silver supply — have little incentive to ramp copper or zinc output purely for the by-product silver revenue, especially when treatment charges for concentrates remain compressed.
The result is a market where demand grows relentlessly while supply stays structurally capped. Industrial consumption now accounts for over half of total silver offtake, adding a layer of demand that is far less price-sensitive than jewellery or investment. As long as global copper and zinc production growth remains tepid, silver supply will remain constrained — and deficits will persist.