Silver market faces projected sixth consecutive year of deficit

The global silver market is projected to face its sixth consecutive year of structural deficit in 2026. According to data from the Silver Institute and Metals Focus, a deficit of approximately 46.3 million ounces is expected, while mine production is forecasted to remain nearly stagnant at around 844.1 million ounces.

Supply constraints are driven by the fact that only about 26% of global silver production comes from primary silver mines. The majority of silver is produced as a byproduct of mining for lead, zinc, copper, or gold, meaning production levels do not respond immediately to rising silver prices.

Market analysis also highlights the gold-silver ratio, which has been pushed above its long-term equilibrium of approximately 60:1, largely due to high gold demand from central banks. This deviation suggests potential catch-up capacity for silver. Companies such as Vizsla Silver, Sierra Madre Gold and Silver, and Endeavour Silver are noted within the context of these market dynamics.