Silver has crashed big-time after reaching an all-time high price. From $121, the price of silver crashed to $65, a sharp fall of 46% in less than 10 days of trading. Silver currently trades around $83, after rising 28% from the recent lows.
Despite the big volatility in silver prices seen early in the year, the Silver Institute is positive on its 2026 run and believes that even after the big fall, Silver has since shown resilience and has formed a technical price support.
In its latest commentary, The Silver Institute says that the underlying drivers that supported silver throughout much of 2025 have remained firmly in place so far this year. These include tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty, and concerns over the Federal Reserve’s independence. Earlier uncertainty about China’s silver export policy briefly raised fears of supply disruptions, though these concerns have eased in recent weeks.
In addition, silver’s underlying supply-demand fundamentals remain supportive. Global silver demand is expected to remain largely unchanged in 2026, as healthy gains in retail investment are likely to offset most of the losses across other key demand segments, notably in jewelry, silverware, and industrial demand, according to The Silver Institute.
Total global silver supply is forecast to increase by 1.5 percent in 2026, reaching a decade high of 1.05 billion ounces. In 2026, silver mine production is expected to increase by 1% to 820 Moz, driven by stronger output from existing operations and recently commissioned projects.
The silver market is expected to remain in deficit in 2026 for the sixth consecutive year, at a noteworthy 67 Moz.
As a result, the global silver market will continue to rely on the release of bullion from above-ground inventories, adding pressure to an already tight physical market. Looking ahead, the global economic and geopolitical environment is likely to remain supportive for precious metals prices in 2026, according to The Silver Institute. In addition, physical liquidity in the London silver market may remain relatively tight.