The World Silver Survey 2026 details a transformative era for the silver market, characterized by extreme price volatility, a shifting industrial landscape, and a definitive end to the era of “unlimited liquidity.” After years of structural deficits, 2025 emerged as a landmark year where supply-demand imbalances finally triggered explosive price action.

Price Performance and Market Dynamics

Silver witnessed a spectacular ascent in 2025, surging from under $29/oz to a December peak of $84/oz. This momentum culminated in an all-time record of $121.60/oz in January 2026, before a hawkish Federal Reserve pivot and geopolitical conflict in Iran induced a sharp correction. Despite this volatility, the gold-to-silver ratio compressed significantly, reaching a decade-low of 55:1 by late 2025, signaling silver’s outperformance relative to gold.

Supply: Record Margins and Recycling

Global mine production rose 3% to 846.6 Moz in 2025. Growth was fueled by high-grade ramp-ups in Chile, Peru, and Russia, offsetting a 5% decline in Mexico caused by regulatory shifts and falling grades. Notably, primary silver mines now account for only 26% of global supply, leaving the market increasingly dependent on by-product output from copper and gold operations.

While production rose, the real story lay in profitability. Record gold prices boosted by-product credits, driving silver miners’ All-In Sustaining Costs (AISC) down to $12.21/oz. This created a staggering 75% increase in profit margins, with nearly the entire primary silver sector remaining profitable. Additionally, recycling hit a 13-year high of 197.6 Moz, though refinery bottlenecks limited its full impact.

Demand: A Tale of Two Sectors

For the first time since the pandemic, total silver demand contracted by 2% to 1,130.6 Moz. This was driven by two main factors:

• Industrial Thrifting: Industrial demand fell 3%, primarily due to the solar industry. As silver costs spiked to 20% of cell manufacturing costs, manufacturers accelerated “thrifting” technologies, reducing silver loading in photovoltaic (PV) cells.
• Price Sensitivity: High prices crushed jewelry and silverware demand, particularly in India, where fabrication dropped 20%.

Conversely, physical investment remained robust. Demand for coins and bars rose 14%, led by a massive 33% surge in India and a doubling of investment demand in China.

The Liquidity Squeeze and 2026 Outlook

A critical theme of the report is the structural fragility of inventories. In October 2025, a convergence of ETP inflows and physical demand led to a liquidity squeeze in London, sending overnight lease rates to 200%. With London’s non-ETP stocks hitting record lows, the market proved it no longer has a “buffer” for sudden demand spikes.

Looking ahead to 2026, Metals Focus projects a sixth consecutive deficit of 46.3 Moz. While industrial and jewelry demand may continue to soften under price pressure, silver’s new status as a U.S. Critical Mineral and its growing role in AI data centers provide a strong floor. The market remains in a state of “permanent deficit,” where cumulative shortfalls (totaling 716 Moz over five years) ensure that silver remains a high-stakes, strategically vital asset.