DBT Bureau
Pune, 15 Feb 2026
Silver prices are consolidating near the $80 level after recent volatility, but the broader bullish trend remains intact, according to the Silver Institute. The market is projected to record its sixth consecutive annual deficit in 2026, supported by tight supply and resilient investment demand. Physical investment is forecast to surge 20% to a three-year high, while global ETP holdings remain elevated. Although industrial demand is expected to decline slightly, particularly in the solar sector, structural growth in AI, data centers, and automotive electrification is providing support. Overall demand is still projected to outpace supply despite higher global output.
Key Highlights
- Silver consolidates near $80 but long-term uptrend remains intact.
- Market deficit expected for sixth straight year in 2026.
- Physical investment demand forecast to jump 20% to 227 Moz.
- Industrial demand to dip 2%, led by weaker solar consumption.
- Total supply seen rising 1.5%, yet demand continues to exceed output.
Silver prices are showing signs of stabilization, consolidating in the elevated $80-per-ounce range after a period of sharp volatility. Although prices remain below last month’s record highs, the broader uptrend continues to draw strength from solid underlying fundamentals, according to the Silver Institute’s latest report.
The primary driver behind silver’s resilience is the persistent supply-demand imbalance. The market is projected to record its sixth consecutive annual deficit in 2026, with a shortfall estimated at 67 million ounces. Analysts highlight tight physical supply conditions in London, geopolitical uncertainty, and ongoing concerns about U.S. monetary policy as key supportive factors. So far this year, silver prices have gained 11%, reflecting renewed investor interest.
Investment demand is expected to lead the market higher. Physical investment is forecast to rise 20% to 227 million ounces, marking a three-year high. Western investor participation is seen recovering after several years of decline, while Indian demand is likely to remain strong amid positive sentiment. Meanwhile, global exchange-traded product holdings stand at approximately 1.31 billion ounces.
On the industrial front, demand is projected to decline 2% to around 650 million ounces, largely due to reduced silver usage in photovoltaic solar panels. However, structural growth in electrification, artificial intelligence, data centers, and the automotive sector is expected to partially offset the slowdown.
Jewelry demand may face additional pressure, falling more than 9% to its lowest level since 2020, as high prices dampen consumption in key markets. Despite modest supply growth to a decade high of 1.05 billion ounces, overall demand is still expected to outpace output, keeping the silver market structurally tight.
While volatility has eased, persistent structural deficits and firm investment demand continue to underpin silver’s long-term bullish outlook despite softer industrial and jewelry consumption.
