Silver prices hit repeated record highs in 2025, driven by tight liquidity, elevated lease rates, and strong investor demand, according to the latest World Silver Survey 2026 released by the Silver Institute.
The market remained in deficit for a fifth straight year, as falling inventories, a shift of metal into CME vaults, rising exchange-traded product holdings, and a surge in retail investment triggered a sharp liquidity squeeze in October.
Total silver demand declined 2% to 1.13 billion ounces, with a 14% rise in coin and bar demand offsetting weakness in other segments. Industrial demand fell 3% to 657.4 million ounces, as gains from AI infrastructure, automotive demand, and power grid investment were outweighed by reduced photovoltaic uptake due to cost pressures and substitution.
Jewellery fabrication dropped 8%, led by a 20% fall in India amid high prices and volatility. Europe and North America also declined, while China recorded a 5% increase supported by gold substitution and product innovation. Silverware demand fell 21%, largely due to weaker Indian consumption.
India saw sharp divergence between consumption and investment trends. Jewellery and silverware demand dropped steeply as record domestic prices curbed affordability and discretionary spending, particularly in rural markets. However, physical investment surged, with bar and coin demand rising 33%, supported by strong investor interest. The country also imported 232 million ounces of silver in 2025, underscoring its continued role as a key global demand centre.
On the supply side, global mine production rose 3% to 846.6 million ounces, supported by higher by-product output in Peru and the ramp-up of Russia’s Prognoz mine. Recycling increased 2% to a 12-year high, though refinery bottlenecks limited volumes.
For 2026, demand is projected to ease another 2% to 1.11 billion ounces, with continued pressure on jewellery and industrial segments. However, investment demand is expected to rise 18%.
Mine supply is forecast to remain flat, widening the structural deficit to 46.3 million ounces. The report notes that macroeconomic uncertainty, geopolitical risks, and currency concerns are likely to continue supporting prices.
After rising 42% in 2025, silver surged past $121 in January 2026 before retreating to the mid-$70 range in early April, reflecting heightened volatility.