I just saw the annual report from the World Silver Association, and there are some very interesting points about the silver market worth paying attention to.

Basically, the scenario they present is for a sixth consecutive year of supply deficit in 2026. The deficit is expected to reach 46.3 million troy ounces, growing 15% compared to the previous year. It may seem small, but it’s a significant movement that has been repeating for several years.

What catches the eye is the market dynamics. Demand for silver bars and coins exploded with an 18% increase, but that wasn’t enough to offset declines in other segments. Industrial, photographic, jewelry, and silverware demand fell, leading to a 2% reduction in total consumption. Quite paradoxical, isn’t it?

On the supply side, things are also tight. Mining declined slightly, and hedging decreased, but recycling rose 7%, which helps ease some pressure. Still, overall supply is expected to fall 2%.

Now, what most caught my attention in the report is the optimistic tone of the association regarding the rest of the year, despite conflicts in the Middle East. They believe the situation can be contained and that monetary tightening is temporary. If that’s confirmed, the pressure on real yields of bonds could significantly benefit interest-free assets, especially precious metals like gold and silver.

For those following the commodities market, this is an important scenario. The combination of persistent deficits with renewed demand for protective assets could present interesting opportunities. If you’re considering exposure to silver, whether through physical holdings, silver ETFs, or other strategies, this context of limited supply and potential defensive demand is something to take seriously. Many still underestimate silver’s role as a safe-haven asset, especially compared to gold, but the numbers in the report suggest that interest in silver ETFs and other silver instruments could gain traction in the coming months.