Silver market faces 46.3 million‑ounce deficit amid falling solar demand

Silver prices have slipped to about $68 per troy ounce, roughly 44 % below the all‑time high reached in January 2026. A structural drop in demand from the photovoltaic (PV) sector is driving the decline: the World Silver Survey 2026 projects a 19 % reduction in PV‑silver use for 2026, with Chinese manufacturers such as Longi Green Energy and Jinko Solar moving to copper‑based cells.

Despite weaker demand, the market remains undersupplied. Metals Focus predicts a sixth consecutive annual deficit, this time totaling 46.3 million ounces. Inventories have contracted sharply, with COMEX holdings at about 79.9 million ounces in mid‑May—a 75 % drop from the 2020 peak—and LBMA stocks down roughly 20 % from their January 2021 record. Supply cannot be quickly scaled because most silver is a by‑product of other metal mining. The upcoming Federal Open Market Committee meeting on 16‑17 June could influence the price direction, but technical indicators show limited short‑term momentum. Other sectors such as data‑center, AI infrastructure, and automotive continue to absorb silver, partially offsetting the PV slowdown.