Silver Market Enters Sixth Consecutive Year of Supply Deficit at 46 Moz

The Silver Institute's World Silver Survey 2026 projects a sixth consecutive annual deficit of 46 Moz, widening from 40.3 Moz in 2025. Cumulative drawdowns since 2021 have reached nearly 762 Moz - approximately 70% of annual mine production consumed from above-ground inventories.

The deficit is structurally driven: ~70% of silver is a byproduct of copper, lead, and zinc mining, making output insensitive to silver's price. Industrial demand, now >50% of consumption, continues growing, particularly from solar PV manufacturing. China tightened silver export licenses in January 2026, constraining supply.

Global silver supply is expected to fall ~2% in 2026, reinforcing the deficit. The metal's dual profile - both precious and industrial - creates unique demand dynamics differentiating it from gold and supporting sustained deficits even at elevated prices.