Sixth consecutive silver deficit: Supply shortfall grows to 46 million ounces!

Mon Oct 12 2026

The global silver market is heading for its sixth consecutive supply deficit in 2026. According to research by Metals Focus on behalf of the Silver Institute, the global supply shortfall is expected to widen from 40.3 million ounces to around 46.3 million ounces this year.

Total supply is projected to decline by around 2%, while global mine production remains stagnant. Industrial and investment demand remains high. Short-term price pullbacks to around US$60 per ounce do not change the underlying supply shortage, increasing attention on established North American mining districts.

North America comes into focus as a solution to the silver deficit

Developing new greenfield deposits can take decades, making established mining regions in the US and Canada, with existing infrastructure and a history of mining, increasingly important.

Established producers include:

• Hecla Mining: 4.2 million ounces of silver produced in the second quarter.
• First Majestic Silver: 3.4 million ounces.
• Endeavour Silver: 2.09 million ounces.

High-grade discoveries, including Americas Gold and Silver's reported silver intercept of 1,062 grams per tonne in Idaho, demonstrate the potential of established mining districts.

Key factors driving market dynamics include:

• Widening deficit: The global supply shortfall is expected to increase by nearly 15% to 46.3 million ounces in 2026.
• Stagnant mine production: A lack of new high-grade developments is slowing global supply growth.
• Infrastructure advantage: Access to existing processing facilities can determine how quickly new projects enter the market.

Silver Bow Mining: 170 million ounces of silver and a fast track to production

Silver Bow Mining, listed as NYSE: SBMT, is developing its Rainbow Block Project in Butte, Montana. The project has a defined resource base of approximately 170 million ounces of silver.

To avoid the lengthy process of building its own processing facilities and shorten the path to commercial production, the company is acquiring the nearby Jefferson County Metallurgical Complex.

The project also has a binding offtake agreement with Ocean Partners UK worth US$88 million.

According to the article, the combination of a defined large-scale resource, existing processing infrastructure and secured offtake could help Silver Bow Mining advance the project towards commercial readiness and contribute to closing the North American silver supply gap.

Source: https://goldinvest.de/