Silver facing sixth straight year of shortage
Silver will remain in shortage in 2026 with a 35 million ounce deficit, marking the sixth consecutive year of undersupply.
Why it matters
Persistent silver shortages could pressure industrial production and investment demand as prices remain volatile and supply constraints continue.
In Australia. No direct Australian effect yet, though Australian mining companies producing silver as a by-product could face margin pressure from lower prices.
Key facts
- 35 million ounces
- 2026 deficit
- 746 million ounces
- Six-year shortfall total
- Over 120 dollars per ounce
- January price
- Around 50 dollars per ounce
- Current price
- Silver will face another shortage this year, according to the Silver Institute.
- Primary mines will lift output by 6.5 million ounces to 233 million ounces, but overall mined supply will drop 0.5% to 834 million ounces due to lower output in Peru, China and Argentina.
- The projected 35 million ounce shortage in 2026 marks the sixth year in a row of unmet demand, totalling 746 million ounces since 2020.
- Recycling is expected to rise 6% to 210 million ounces, yet even this cannot close the gap.
- Industrial demand remains high, staying 22% above 2019 levels despite a projected 3% drop this year.
- Silver prices have dropped from over US$120 per ounce in January to around US$50 per ounce, driven by expectations of US Fed rate rises.
