Forecast of a 5% Decline in Global Silver Demand in 2026
According to the latest research by consulting firm Metals Focus for the Silver Institute, demand for this precious metal will fall 5% in 2026 due to weak demand for jewelry and solar cells.
Research conducted by consulting firm Metals Focus for the Silver Institute shows silver demand at 1.08 billion troy ounces this year.
Silver, which is used in jewelry, electronics, electric vehicles, and solar panels as well as for investment, has fallen 59% to $50 per ounce since retail buying pushed prices to a record $121.60 in January.
The foundation for this price increase was laid in 2025, when silver saw a 147% price gain, as a massive flow of the metal into US warehouses due to tariff uncertainty and into silver-backed exchange-traded products (ETPs) reduced inventories in the London market.
This year, expectations of higher interest rates in the US, a stronger dollar, and higher bond yields have affected investment sentiment.
The Silver Institute and consulting firm Metals Focus announced on Friday that the release of silver through ETP sales, outflows from US warehouses, and a smaller market deficit have improved inventories in the physical market.
Metals Focus forecasts that after 278 million ounces of inflows in 2025, 45 million ounces of ETP will flow out of the market net this year. In early November, ETP holdings had reached 1.25 billion ounces.
Industrial demand for silver is forecast to decline 3% in 2026, as photovoltaic system installations, particularly in China, have been below expectations, while record silver prices in January accelerated the substitution trend.
Meanwhile, demand for jewelry and silverware is forecast to fall 22% and 17%, respectively, as higher prices and lower rural incomes in India have encouraged purchases of smaller and lighter products. Demand in China and the US has also declined.
According to a Reuters report, Metals Focus announced that strong retail investment in late 2025 and early 2026 gave way to much lower buying from March as silver prices fell. Global demand for bars and coins is forecast to decline 2% this year, with retail investment in the US reaching its lowest level since 2010.