World Silver Institute: Global Silver Market to Face Sixth Consecutive Year of Supply Shortage

Odaily News The World Silver Institute maintained its previous view in its annual outlook released on Wednesday, stating that the global silver market will face a supply shortage for the sixth consecutive year. The report points out that the supply deficit in 2026 is expected to widen by 15% to 46.3 million troy ounces. Although demand for silver bars and coins increased by 18%, declines in industrial, photographic, jewelry, and silverware demand may lead to a 2% drop in total consumption. Supply is projected to fall by 2%, primarily due to a slight decrease in mine production and reduced hedging, partially offset by a 7% increase in recycling. The report states that despite the Iran war casting a shadow over the short-term price outlook, it maintains a "constructive view" on silver for the remainder of 2026.

The institute expects the Middle East conflict to be contained and that monetary policy tightening aimed at curbing energy inflation will be temporary. Even if the war persists, concerns over weak growth and fiscal strain may lower real bond yields, thereby boosting interest-free precious metals like silver and gold. The report writes: "Coupled with the recovery of safe-haven demand amid cyclical market liquidations, this should reignite interest in gold and silver." (Jin10)