Global silver market supply and price outlook

The silver market is characterized by diverging price forecasts from major financial institutions and a persistent structural deficit. While J.P. Morgan has lowered its 2026 annual forecast to an average of $70.00, other institutions like Citi and Goldman Sachs maintain higher targets, with Goldman Sachs predicting an annual average between $85.00 and $100.00.

The Silver Institute reports a sixth consecutive year of global supply deficits, driven by industrial demand in sectors such as solar energy, electronics, electric vehicles, data centers, and artificial intelligence.

A study by Precious Metals Insights, commissioned by the Silver Institute, reinforces the significance of the gold-silver ratio as a technical indicator. Analyzing data spanning over 3,000 years, the study identifies a long-term equilibrium for the ratio at approximately 60:1. With the ratio currently near 67:1, analysts suggest silver may have catching-up potential, noting that significant deviations above the historical mean often signal that silver is underpriced relative to gold due to high central bank demand for gold.

Looking toward 2026, the Silver Institute anticipates the sixth consecutive structural silver deficit. Physical investment demand is projected to increase by 20% to 227 million ounces, supported by continued demand from automotive applications, data centers, and artificial intelligence.