Metals Focus

Solar installations continue to absorb silver, but lower metal use per cell is changing the demand story for investors. Even under lower demand assumptions, the silver market remains in deficit for a sixth consecutive year.

Silver’s byproduct-heavy supply chain is drawing renewed attention after global lead and zinc mine production fell in the first half of 2026. The pressure supports the bullish supply argument, but comfortable Western inventories show the physical market has not yet tightened visibly.

Mexico, Peru and Chile each delivered fresh reminders that silver output is often shaped by community issues, ore grades and by product economics rather than the silver price. The combined near term impact appears modest, but the structural message for investors is more important.

Peru’s political and mining landscape is drawing closer attention from silver investors because the country accounts for about 15% of global mine supply. With the market already forecast to face another annual deficit, any disruption in Peruvian mining regions could sharpen concern over supply concentration.

The silver market is heading toward another annual deficit while North American trade rules enter a more uncertain phase. Mexico, the largest silver producing country, now sits at the center of a yearly USMCA review cycle that could shape investor risk premiums.