Silver Supply Deficit and Industrial Demand Support Prices

While strong US data and Fed rate expectations are putting pressure on precious metals in global markets, silver is finding support thanks to supply shortages and industrial demand. Spot silver is trading in a volatile range around $74. According to a report prepared by the Silver Institute and Metals Focus, the silver market is expected to experience a supply deficit for the sixth consecutive year in 2026. This situation, combined with declining inventories and growing demand, is creating upward pressure on prices. Silver is in demand due to its increasing use in industrial sectors such as solar energy and electronics. Supply-side constraints are linked to a slowdown in mining production and a decline in recycling rates. Analysts note that silver benefits from dual demand as both an investment and an industrial metal. However, a strong dollar and high interest rate environment could limit prices in the short term. This is not investment advice.