LONDON, Feb 10 (Reuters) – Global silver demand is expected to remain steady in 2026 with gains in retail investment offsetting most of the losses across industrial, jewellery and silverware demand, the Silver Institute industry association said on Tuesday.
Silver, used in jewellery, electronics, electric vehicles and solar panels, as well as for investment, stands at around $81 per troy ounce, up 14% so far this year, after frenzied retail buying drove it to a record high of $121.60 on January 29. It rose 147% in 2025.
The silver market is heading for a sixth consecutive year of structural deficit, however, currently expected at 67 million troy ounces, the Silver Institute said in the preliminary estimate produced for it by consultancy Metals Focus, due to be updated in mid-April.
It did not disclose the data for 2025. In April last year it expected the 2025 deficit to be 117.6 million ounces.
Industrial silver fabrication is forecast to decline by 2% in 2026, to a four-year low of 650 million ounces led by thrifting – efforts to use less – and outright substitution away from silver in the photovoltaic sector, the association said.
Jewellery demand is projected to fall for the second consecutive year, declining by 9% to 178 million ounces, its lowest level since 2020, as record prices hit demand in India and other key markets. Silverware demand is seen falling by 17%, led by India.
By contrast, physical investment is expected to rise by 20% to a three-year high of 227 million ounces with Western demand in this category recovering after three consecutive years of decline.
Total global silver supply is forecast to increase by 1.5% to a decade high of 1.05 billion ounces. Mine production is forecast to increase by 1% to 820 million ounces, and recycling is set to rise by 7%, exceeding 200 million ounces for the first time since 2012.
(Reporting by Polina Devitt; Editing by Kevin Liffey)
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