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Informist, Wednesday, Feb. 25, 2026

 

MUMBAI – Global silver demand is expected to remain stable in 2026 as stronger retail investment will largely offset a decline in jewellery, silverware, and industrial consumption, according to Geojit Investments Ltd. Quoting The Silver Institute, the brokerage said in a report that demand for silver coins and bars has strengthened in recent months while global exchange-traded product holdings stand at an estimated 1.31 billion ounces. But industrial demand for silver is expected to fall 2% to a four-year low of 650 million ounces, mainly because of reduced silver use in photovoltaics.

 

"Jewelry demand is set to fall more than 9% and silverware demand about 17% in 2026, with high prices hitting India hardest, while China remains the only major market expected to see a rise in jewelry consumption," the brokerage said. "In contrast, physical investment demand is expected to climb 20% to 227 million ounces, reaching a three-year high."

 

Global silver supply is expected to see a moderate rise of 1.5% in 2026 to a decade's high of 1.05 billion ounces. The rise is backed by a 1% increase in mine production to 820 million ounces from existing and newly commissioned projects, and a 7% jump in recycling that will push secondary supply above 200 million ounces for the first time since 2012, it said.

 

In spite of the rise, the market is expected to remain in deficit for a sixth consecutive year, with a shortfall of around 67 million ounces, reinforcing reliance on above-ground inventories and adding strain to an already tight physical market, the report said.

 

Strong industrial demand driven by rapid digitalisation, expansion in artificial intelligence, and growth in data centres and information technology infrastructure is boosting the need for silver-intensive computing and electrical systems. These key forces are expected to continue supporting the market in 2026.

 

Meanwhile, tight physical supply, geopolitical instability, US trade policy uncertainty, and concerns over the independence of the US Federal Reserve are sustaining the bullion metal's safe-haven appeal. At the same time, strength in gold should help cushion downside risks for silver, even as heightened price volatility remains likely in the near term, it said.

 

At 1506 IST, the most-active May silver contract on COMEX was up 3.7% at $90.75 per ounce.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT.

 

Reported by Meera Nair

Edited by Rajeev Pai

 

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