The global silver market could remain undersupplied for a sixth consecutive year despite a fading demand. The latest report from the Silver Institute shows a 2% decline owing to high prices pressuring the key consumption segment.
Still, the organization expects the structural deficit to widen to 46.3 million ounces at 1.1 billion demand.
From Industry to Investment
Higher prices are the primary driver of demand decline. On the consumer side, jewelry fell by 8% in 2025, and the Institute expects the trend to continue. India remains a particularly exposed market, as record prices erode affordability. Silverware demand remains under pressure, even at a four-year low.
Meanwhile, industrial demand, the largest consumer of silver, is also softening. After 4 years of growth, it declined by 3% in 2025. The Institute expects it to continue falling in 2026 as solar panel manufacturers look to reduce silver use or find ways to fully …
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