Global demand for silver is projected to decline by 2% in 2026, reaching 34,213.82 tonnes (1.1 billion ounces), down from 35,146.93 tonnes (1.13 billion ounces) in 2025. This decline is largely attributed to significant losses in the jewellery and silverware sectors, with the Silver Institute noting a 3% decrease in industrial demand, particularly due to a slowdown in photovoltaic applications. The geopolitical landscape, including the ongoing conflict in Iran, complicates the short-term outlook, but overall macroeconomic conditions remain supportive for silver prices. The market is expected to face a widening deficit, increasing to 1,440.1 tonnes (46.3 million ounces) from 1,250.36 tonnes (40.2 million ounces) in the previous year. Notably, demand for silver jewellery fell by 8%, with India leading the decline at 20% due to high prices. Conversely, demand for coins and bars surged by 14%, reflecting strong investor interest amidst rising prices. Despite these challenges, global mined silver output is expected to rise by 3% in 2025, driven by increased production from copper operations, although it is projected to remain flat in 2026 due to operational pressures.