Silver demand seen down 5% this year due to weaker jewellery purchases
LONDON: 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…
Silver demand is projected to decline by 5% in 2026, according to research from consultancy Metals Focus for the Silver Institute. This drop is attributed to weaker jewelry purchases and reduced consumption in solar cells, driven by high prices that have prompted consumers to seek alternatives. The consultancy's figures indicate a total demand of 1.08 billion troy ounces this year, down from a record high of $121.6 per ounce in January 2026.
The surge in silver prices during 2025 was primarily fueled by retail buying, which pushed the metal's value to unprecedented levels. However, factors such as higher interest rates, a stronger dollar, and increased bond yields have dampened investment sentiment this year. Additionally, net outflows from silver-backed exchange-traded products (ETPs) have reached 45 million ounces, compared to 278 million ounces in 2025.
The Silver Institute and Metals Focus anticipate that industrial demand will fall by 3%, while jewelry and silverware demand are expected to drop by 22% and 17%, respectively, due to higher prices and reduced rural spending in India. China and the US also show subdued demand, with industrial demand falling short of expectations, particularly in China.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
