Silver demand is expected to fall by 5% in 2026 due to weaker jewellery demand and lower consumption in solar cells, where high prices have accelerated substitution, research showed on Friday.
Research done by consultancy Metals Focus for the Silver Institute puts demand at 1.08 billion troy ounces this year.
Silver, used in jewellery, electronics, electric vehicles and solar panels as well as for investment, is down 59% to $50 an ounce since retail buying drove prices to a record high of $121.6 in January.
The base for that rally was created in 2025, when silver surged 147%, as massive inflows of the metal to US inventories due to tariff uncertainty and into silver-backed exchange-traded products (ETPs) tightened liquidity in the London market.
This year, expectations for higher interest rates, a stronger dollar and higher bond yields have weighed on investment sentiment.
Silver released through ETP selling, outflows from stocks in the US and a smaller market deficit improved liquidity in the physical market, the Silver Institute and consultancy Metals Focus said on Friday.
Metals Focus sees net ETP outflows of 45 million ounces this year after 278 million ounces of inflows in 2025.
As of early November, ETP holdings stood at 1.25 billion ounces.
Industrial demand is expected to fall by 3% in 2026 as installations in photovoltaics have fallen short of expectations, particularly in China, while January's record silver prices accelerated substitution.
Meanwhile, demand for jewellery and silverware is forecast to decline by 22% and 17%, respectively, as higher prices and weaker rural spending in India encouraged purchases of smaller, lighter products.
Demand in China and the US is also subdued. Strong retail investment in late 2025 and early 2026 gave way to far more subdued buying from March as silver prices fell, Metals Focus said.
It expects global bar and coin demand to fall 2% this year, with US retail investment hitting its lowest level since 2010.
