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Informist, Friday, Apr. 24, 2026

 

MUMBAI – Silver availability is likely to be in deficit for the sixth consecutive year in 2026, according to the Silver Institute. As a result, the cumulative stock drawdown in the white metal is expected to reach 765 million ounces since 2021, it said in its World Silver Survey 2026, released last week.

 

According to the survey by the Washington-based association, falling global stocks since 2021, shifts in inventories into CME vaults, rising holdings by exchange-traded products and a surge in physical investment had led to an unprecedented liquidity squeeze in October. "These developments coincided with elevated macroeconomic and geopolitical risks, prompting investors to increase allocations to precious metals for portfolio diversification," as per highlights of the report circulated by Metals Focus, which had also produced the report.

 

As a result, silver prices delivered a remarkable performance in 2025, breaking a series of all-time highs before surging to $121 in early 2026.

 

The renewed exchange-traded product demand and the ongoing US tariff uncertainty leave the market vulnerable to another liquidity squeeze. In turn, this suggests heightened volatility and further price gains in 2026, it said.

 

Although the war in West Asia has complicated the short-term outlook, it strengthens the longer-term case for precious metals. "Our base case is that the situation will be contained and that the recent pressure from rising US rate expectations on precious metals prices will be temporary," it said. Moreover, elevated policy uncertainty, sovereign debt risks, and concerns over the future role of the US dollar remain relevant.

 

Turning to the physical markets, the institute expects industrial demand to fall in 2026 by a further 3% amid an ongoing (and more pronounced) downturn in personal vehicle offtake, while both jewellery and silverware fabrication are expected to continue suffering price-led declines. Some of these losses, though, will be mitigated by firmer coin and net bar demand.

 

"Total supply is also expected to fall by 2%, as a slight drop in mine production and net de-hedging will be partly offset by a further rise in recycling," it said. Based on an analysis of these factors, the survey inferred that heightened volatility and further price gains appear likely in 2026.  End

 

Reported by Abhijit Doshi

Edited by Vandana Hingorani

 

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