Expect Another Supply Deficit for Silver

Silver demand outpaced silver supplies for this fifth year in a row in 2025. That imbalance finally exploded in silver prices, according to the Silver Institute’s new annual report on the international silver market, World Silver Survey 2026.

Here are a few of the headline numbers from The Silver Institute:

Despite a 7 percent increase in supply and a 2 percent contraction in overall demand, silver ran a 40.3 million ounce deficit last year.

“Having started 2025 below $29, its price broke a series of all-time records, peaking at $84 in December, before rallying further into 2026.”

Silver reached a record high this year ─ breaching the psychologically important US$100 level for the first time ─ fueled mainly by rising investor interest… Silver then declined below US$80 but has since formed technical support.

“Mine production rose by 3 percent to 846.6 million ounces, with Central and South America leading gains on Chilean project ramp ups and higher grades in Peru, while Mexico continued to weigh on North American output. Recycling rose by 2 percent to 197.6 million ounces, the highest level in 13 years, helped by gains in jewelry and silverware recycling.”

A contraction in photo-voltaic demand and thrifting elsewhere outweighed gains linked to AI-related data-centers.That is partly offset by higher physical demand in bars and coins. Uncertain macroeconomic and geopolitical conditions again boosted coin and bar demand, particularly in the fourth quarter, rising by 14 percent year over year.

The underlying drivers that supported silver throughout much of 2025 have remained firmly in place so far this year. These include tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty, and concerns over the Federal Reserve’s independence.

Therefore the silver market is expected to remain in deficit (total supply less demand) for a sixth consecutive year in 2026.

We recommend everyone have some silver for personal protection and spending power in a crisis.Speak with a Republic Monetary Exchange precious metals professional to learn more about silver in your personal plan.