16th April 2026
US-based industry body The Silver Institute expects total demand to decrease modestly by 2% year-on-year this year to 1.11-billion ounces, given sustained high prices that impact jewellery and silverware demand.
Conversely, some losses will be mitigated by firmer coin and bar demand, which is expected to increase by 18% year-on-year.
The Silver Institute says silver is poised to have a sixth year of market deficit as 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. With mine production stable this year, we expect the structural market deficit to widen to 46.3-million ounces,” the organisation states.
While the Iran war has undoubtedly complicated the short-term outlook for silver, the broader macroeconomic and geopolitical backdrop remains supportive for silver prices.
This assumes that the situation will be relatively contained and that the recent pressure on precious metals prices from rising US rate expectations will prove temporary.
Further, elevated policy uncertainty, sovereign debt risks, and concerns over the future role of the US dollar remain relevant.
Commenting further on silver’s performance in 2025, The Silver Institute says falling inventories, a dramatic shift of metal into Chicago Mercantile Exchange 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.
Additionally, global silver demand exceeded supply for the fifth consecutive year in 2025. While this narrowed compared to 2024, it continued to place additional pressure on global above-ground silver stocks.
SILVER DEMAND
Total silver demand decreased by 2% last year to 1.13-billion ounces, as a 14% jump in coin and bar demand almost offset losses across other key segments.
After four years of strong growth, silver industrial demand declined by 3%to 657-million ounces in 2025.
Demand for brazing alloys increased modestly by 1%, supported by continued strength in the automotive and aerospace sectors. In contrast, other industrial demand decreased by 7%, largely owing to a slowdown in the ethylene oxide market.
On a regional basis, East Asia and South Asia accounted for the majority of losses in 2025, while demand in Europe and North America remained broadly stable.
Global silver jewellery fabrication decreased by 8% last year, with India recording the steepest decline at 20%, as record-high rupee prices and heightened volatility undermined affordability.
Silverware demand declined by 21% to a four-year low last year. As with jewellery, the losses were concentrated in India, where far higher prices weighed on discretionary spending.
After two consecutive years of decline, coin and net bar demand grew by 14% in 2025.
Strong gains were recorded across most regions, except in the US. India led with 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.
By contrast, the US reported 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.
SUPPLY
Global silver mine production increased by 3% to 846-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.
Additionally, smaller gains were recorded in China and Morocco, although these were partly offset by lower output from key operations in Mexico and a decline in Indonesia.
From a regional standpoint, output from North America decreased by 3% to its lowest level in 10 years last year. However, supply from Central and South America grew by 5%, while that from Asia fell by 1%.
Lead and zinc mines remained the largest source of silver, but their share of global supply edged lower year-on-year in 2025. In contrast, output from gold and copper operations increased by 5% and 6%, respectively.
Silver output from recycling increased by 2% in 2025 to a 12-year high of 197-million ounces.
The Silver Institute finds that jewellery and silverware were the key segments that saw significant selling, although refinery bottlenecks capped volumes. In terms of industrial recycling, scrap from ethylene oxide rose, while e-scrap volumes fell. 
Source：Mining Weekly at https://www.miningweekly.com/article/silver-poised-for-investment-demand-as-another-market-deficit-year-looms-2026-04-16
