Global silver mine production is expected to remain flat at approximately 1,100 million ounces in 2026, as a prolonged capex drought constrains new project development. Primary silver mine capital expenditure fell 12% in 2025 to $4.2 billion, the lowest level in a decade.
The capex gap is the result of low silver prices during 2014-2020, which discouraged investment in new primary silver mines. The current project pipeline includes only 14 primary silver projects globally, of which just 3 are in construction. The remainder are in pre-feasibility or permitting stages.
Supply growth has instead come from by-product silver (lead-zinc, copper, and gold mines), which accounts for approximately 72% of global production. By-product output is more dependent on base and precious metals prices than silver-specific economics.
Average mine cash costs have risen to $10.80/oz in 2026 from $8.50/oz in 2022, driven by energy costs, labor inflation, and declining ore grades. Major producing regions — Mexico, Peru, and China — all face aging mines with declining head grades.
Flat supply and rising demand create a long-term bullish setup for silver. For procurement teams, this means the current price dip below $65 is likely temporary. The supply-demand balance is structurally tightening, and by 2027 the market could shift into a sustained deficit. Consider longer-term fixed-price contracts while silver is below $70.