Global demand for silver is projected to decline by 2% to 34,213.82 tonnes (1.1 billion ounces) this year, down from 35,146.93 tonnes (1.13 billion ounces) in 2025. "Double-digit losses are expected in jewellery and silverware, as the impact of higher prices continues. Industrial demand is projected to decline by 3%, chiefly due to a further and marked slowdown in photovoltaics offtake", Silver Institute said in a report titled 'World Silver Survey 2026'.
The US-based precious metal agency said that the Iran war has complicated the short-term outlook, but the broader macroeconomic and geopolitical backdrop remains supportive for silver prices. It expects the situation will be relatively contained and that the recent pressure on precious metals prices from rising US rate expectations will prove temporary. "Elevated policy uncertainty, sovereign debt risks, and concerns over the future role of the US dollar remain relevant," it said.
Falling inventories, a dramatic shift of metal into CME vaults, rising exchange-traded product holdings, and a surge in bar and coin demand created an unprecedented liquidity squeeze in October 2025. "This led to explosive conditions for lease rates and prices. Against this backdrop, silver prices delivered a remarkable performance last year, breaking a series of all-time highs before rallying further in early 2026", it said.
The global market for silver will be in a shortfall for the sixth successive year in 2026, with the deficit widening to 1,440.1 tonnes (46.3 million ounces) from 1,250.36 tonnes (40.2 million ounces) last year, up 15.2%, according to the US-based Institute.
The white metal industrial demand fell 3% to 20447.42 tonnes, or 657 million ounces in 2025, due to slower demand from East and South Asia. The photovoltaic demand saw a substantial slowdown, as intense competition and rising silver raw material costs prompted PV manufacturers to accelerate thrifting and substitution.
The demand for electrical and electronics fell by 2% last year, and other industrial demand tumbled 7% due to a slowdown in the ethylene oxide market. While, brazing alloys demand rose 1%, supported by continued strength in the automotive and aerospace sectors.
However, the demand continued to benefit from structural growth in artificial intelligence infrastructure, strong automotive end-use, and healthy power grid investment.
Demand for silver jewellery declined by 8% last year, led by India, Europe, and North America. "India recorded the steepest decline at 20%, as record-high rupee prices and heightened volatility undermined affordability. European demand fell by 10%, led by Italy amid tariff-driven export declines and weaker end-market sales, while North America dropped by 7%," the report said.
Silverware demand fell by 21% to hit a four-year low last year due to a steep decline in India, the biggest market, where far higher prices weighed on discretionary spending.
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The Institute said that coin and bar demand rose 14% in 2025 to 6771.23 tonnes, or 217.7 million ounces, after reporting a decline in the previous two years. "Strong gains were recorded across most regions, with India recording a 33% increase, while Europe posted its first rise in three years. The Middle East and China recorded multi-fold gains, driven by rising investor interest amid higher prices and a low base in prior years."
However, the US posted a third consecutive year of losses, as President Donald Trump's election dampened safe-haven buying. Profit-taking during the price rally, particularly in the first nine months of the year, also weighed on US demand.
Global mined silver output is expected to rise by 3% to 26332.20 tonnes, or 846.6 million ounces in 2025, driven by higher by-product output from copper operations in Peru and the ramp-up of Polymetal JSC's Prognoz mine in Russia. Smaller gains were also recorded in China and Morocco, which were partly offset by lower output from key operations in Mexico and a decline in Indonesia.
Global silver mine production is expected to remain flat in 2026. "Broader grade-related and operational pressures across key producing regions should offset modest growth at a limited number of assets", the Institute said.
The report said that lead and zinc mines remained the largest source of silver, but their share of global supply edged lower year-on-year. In contrast, output from gold and copper operations increased by 5% and 6%, respectively.
The silver supply from recycling rose 2% to a 12-year high of 6,146.04 tonnes, or 197.6 million ounces in 2025.
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