Deutsche Bank predicts silver market could shift to surplus by 2027

Deutsche Bank analysts project that the silver market may transition from a deficit to a surplus by 2027. According to Daniel Ghali, head of metals research at Deutsche Bank, peak silver scarcity is likely behind the market as inventories rebuild and industrial demand softens.

Key drivers for this shift include a decline in solar-related demand, which has fallen by more than 20% globally, including a roughly one-third reduction in China. Additionally, the amount of silver used per solar cell has decreased by approximately 17%.

Inventory levels are rising across major hubs. London commercial vault holdings reached over 914 million ounces by the end of August, with more than 300 million ounces considered freely available—a 70% increase since October 2025. Similar increases in inventories have been noted in Shanghai and at the Chicago Mercantile Exchange. Analysts attribute these rising stocks to increased recycling and metal returning from private vaults.