Silver's fundamental balance remains tight. The World Silver Survey projects a 2026 deficit of 46.3 million ounces, up from 40.3 million ounces in 2025.
Mine supply is the constraint. Output is plateaued around 820-835 million ounces per year, and new projects can take 7-15 years from discovery to production.
Solar is the largest growth engine, consuming more than 200 million ounces annually. Thrifting and substitution are reducing silver intensity per unit, but total renewable build-out keeps absolute demand high.
Exchange inventories remain a key risk signal. COMEX registered inventory coverage was estimated near 13.4% of open interest in early April, showing that paper price moves can still collide with physical tightness.
Procurement should separate price volatility from supply risk. Deficits support higher long-run costs, so hedge exposure when price dips are not matched by a loosening supply balance.