Six straight years of silver deficits, rising industrial demand, and tightening physical supply are reshaping the global silver market.


For most of the last decade, talk of a “silver shortage” largely lived on the fringes of investing forums. In 2026, it has moved firmly into the mainstream.

The data is becoming harder to ignore. The silver market has now recorded six consecutive years of structural supply deficits, while industrial demand from solar, electronics, electric vehicles, and AI infrastructure continues to accelerate. At the same time, governments and institutions are increasingly viewing silver as a strategic asset rather than simply an industrial metal.

This week alone, several developments highlighted how tight the market is becoming. The Silver Institute reaffirmed its 2026 deficit forecast, major commentary outlets warned of a growing physical supply crisis, and a large options trade wagering on silver between USD $900 and $1,000 per ounce captured global attention.

Whether or not those extreme price targets eventuate is beside the point. The more important story is what sits underneath: tightening inventories, constrained mine supply, rising industrial consumption, and increasing competition for physical metal.

The silver market has now operated in structural deficit for six consecutive years.

According to the Silver Institute, the cumulative shortfall from 2021 through to 2025 reached approximately 820 million ounces. Another deficit is forecast again for 2026.

To put that into perspective, annual global silver mine production sits at roughly 820 million ounces per year. In other words, the cumulative deficit over the last five years is equivalent to an entire year of global mine supply.

Industrial demand alone now consumes the majority of newly mined silver each year. Solar panels, electronics, EV components, semiconductors, batteries, and expanding AI infrastructure all rely heavily on silver due to its unmatched conductive properties.

Before investment demand is even considered, much of the world’s silver supply is already committed to industry.

When deficits persist for this long, the market draws down inventory. Inventory, however, is finite.


Markets eventually respond when structural deficits persist long enough.

Silver prices in NZD terms have risen sharply over the past year, significantly outperforming many traditional asset classes. While volatility remains high, institutional forecasts for silver continue trending higher.

JPMorgan recently forecast silver to average around USD $81 per ounce during 2026. Other market analysts believe prices could move even higher if supply deficits persist and investment demand accelerates.

Meanwhile, the gold-to-silver ratio has compressed considerably from previous extremes, reflecting silver’s strong relative performance against gold over the last twelve months.

Historically, major compressions in the gold-to-silver ratio often occur during periods where silver demand materially strengthens.


Is Silver Still a Good Investment in 2026?

Nobody knows whether silver reaches USD $100, USD $200, or anything close to the extreme targets some traders are speculating on.

What is clear, however, is that the market conditions behind silver today are very different from those seen only a few years ago.

creates a fundamentally different backdrop for the silver market moving forward.

For many investors, physical silver is no longer simply a speculative trade. Increasingly, it is being viewed as a tangible hard asset tied directly to global industrial and technological growth.

At Best Bullion, we stock a range of investment-grade silver bars and coins from globally recognised refiners and mints including:

Whether you are starting small or building a larger physical allocation, we are happy to help you understand the options available.

Browse our latest silver products online or contact us directly to discuss what may suit your goals.

Disclaimer: This article is general market commentary only and does not constitute financial advice. Please consider your own circumstances or speak with a licensed financial adviser before making any investment decision.

The global silver market is tightening fast. Discover what growing supply deficits, industrial demand, and rising prices could mean for New Zealand silver buyers in 2026.

Contact Us