Silver market is going through a big change this year. According to the Silver Institute, the total demand for silver should stay steady in 2026, but the reason why is changing. Even though factories and jewelry makers are buying less silver because it has become so expensive, regular people are buying more silver coins and bars than they have in years. This jump in investing is filling the gap and keeping the market moving.
Record Prices Change Everything
Silver prices have been on a wild ride lately. Last year, the price of silver shot up by a massive 147%. By the end of January 2026, it even hit a record high of $121.60 per ounce. Right now, it is sitting around $81 per ounce, which is still up 14% since the start of the year. Because the price is so high, many people who used to buy silver jewelry or use it in factories are starting to look for cheaper options.
Investors are Buying More Than Ever
The most exciting part of the report is the comeback of silver investing. After three years of people buying less, demand for physical silver is expected to grow by 20% this year. Investors in Western countries are leading this trend, buying up roughly 227 million ounces. People are seeing silver as a safe way to protect their money, and this "buying fever" is the main reason why the silver market isn't shrinking.
Factories and Jewelry Makers Pull Back
On the other side, the high cost of silver is making it hard for businesses. Factories that make solar panels and electronics are trying to "thrift"—which means they are finding ways to use less silver or find other metals to take its place. Because of this, industrial use is expected to drop to its lowest level in four years. Jewelry sales are also falling for the second year in a row, and the demand for silver plates and silverware is expected to drop by 17%, especially in places like India.
More Silver is Being Made, But It’s Still Not Enough
The world is actually producing more silver now than it has in ten years. Total supply is expected to hit 1.05 billion ounces. This is happening because mines are producing more, and more people are recycling their old silver to take advantage of the high prices. Even with all this extra silver, there still isn't enough to go around. The market is facing a "deficit," meaning people want 67 million ounces more than what is actually available. This shortage is likely to keep silver prices high for a long time.#CZAMAonBinanceSquare #USNFPBlowout #GoldSilverRally #TrumpCanadaTariffsOverturned 