Global silver demand is expected to remain broadly stable in 2026, as stronger retail investment is likely to offset declines in industrial, jewellery, and silverware consumption, according to the Silver Institute.
Silver is widely used across jewellery, electronics, electric vehicles, and solar panels, while also serving as an investment asset. Prices currently stand near $81 per troy ounce, up 14% so far this year. This follows an intense wave of retail buying that pushed prices to a record high of $121.60 on January 29. Silver also posted a sharp 147% gain in 2025.
Despite stable demand, the silver market is expected to record its sixth straight year of a structural supply deficit. The shortfall is currently estimated at 67 million troy ounces, based on preliminary figures prepared by consultancy Metals Focus for the Silver Institute. Updated estimates are due in mid-April.
The industry group did not release final data for 2025. However, in April last year, it had projected the 2025 silver deficit at 117.6 million ounces.
Industrial silver fabrication is forecast to decline by 2% in 2026, falling to a four-year low of 650 million ounces. This drop is expected to be driven by thrifting efforts, where manufacturers use less silver, as well as increased substitution away from silver in photovoltaic applications.
Jewellery demand is projected to fall for a second consecutive year, declining by 9% to 178 million ounces. This would mark the lowest level since 2020, as record-high prices weigh heavily on demand in India and other major markets. Silverware demand is also expected to drop sharply, falling by 17%, led primarily by weakness in India.
In contrast, physical silver investment is forecast to rise by 20% to a three-year high of 227 million ounces. This increase reflects a recovery in Western investment demand after three consecutive years of decline.
On the supply side, total global silver output is expected to grow by 1.5% to a decade-high level of 1.05 billion ounces. Mine production is forecast to increase by 1% to 820 million ounces, while recycling is set to rise by 7%, surpassing 200 million ounces for the first time since 2012.
