The Silver Institute reports in its latest review of the silver market that the precious metal will remain in a significant market deficit during calendar year 2025.

Although this year’s deficit is expected to fall by 19% to 149 million ounces, according to the forecast, it is still sizable historically.

Metals Focus — a leading, independent precious metals research consultancy based in London, England — contributed to The Silver Institute’s market projections.

Global silver demand is forecast to remain relatively stable in 2025 at 1.2 billion ounces.

Silver industrial fabrication is forecast to grow by 3% in 2025, with volumes targeted to eclipse 700 million ounces for the first time.

“In keeping with recent years, silver will benefit from ongoing structural gains in green economy applications,” according to The Silver Institute.

The demand for jewelry is expected to decline by 6%, with India accounting for the bulk of that decline.

Total global silver supply is projected to climb 3% in 2025 to an 11-year high of 1.05 billion ounces. Silver mine production is expected to reach a seven-year high in 2025, rising by 2%, to 844 million ounces. By-product silver from gold mines is also expected to rise in 2025.

Silver recycling is projected to increase by 5%, with volumes surpassing 200 million ounces for the first time since 2012.

The silver market is forecast to remain in a deficit in 2025 for the fifth year running.

The recovery has been assisted by short covering by tactical investors in the futures market amid fears about President Trump’s tariff plans and a subsequent spike in futures and spot silver prices.

The potential tariff hikes and their impact on global economic growth, particularly in China, will likely restrain investor enthusiasm across the broader industrial metals complex. This could remain the key drag on silver investment in the coming months, even though silver’s actual industrial demand is expected to remain robust.

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