Silver’s persistent structural supply deficit

In its ‘2025/2026 Precious Metals Investment’ report, Metal Focus forecasts a fifth straight year of a silver supply deficit for 2025, coming in at 63.4 million ounces. And while that figure is expected to retract to 30.5 million ounces in 2026, the firm is confident that the deficit will continue to be a factor for silver this coming year.

Essentially, silver is in an entrenched structural deficit tied to a multi-year mine supply shortfall that can’t keep up with both rising industrial use and strong investment demand. Aboveground silver stocks are running dry, with silver mine production has decreased over the past decade, especially in the silver-mining hubs of Central and South America.

Even with silver at never-seen-before prices, it could be years before any sort of balance returns to the market.

“If the silver that you produce is a small portion of your stream of revenues, you’re not that motivated to try to produce more silver,” he explained. In fact, Krauth said a higher silver price could result in less silver coming to market as miners switch to processing lower-grade material that was once uneconomical and might even contain less silver.

On the exploration side, it takes 10 to 15 years to bring a silver deposit through discovery and into production.

“The reaction time to higher prices is actually really, really slow. I think we’re going to see these shortages and tightness persist,” Krauth added.

Industrial demand for silver from cleantech and AI

Industrial demand was another major catalyst for higher silver prices in 2025, and is expected to remain a strong tailwind for the silver market next year and beyond.

In a December report titled ‘Silver, the Next Generation Metal,’ the Silver Institute explains that heavy demand for silver through 2030 is coming from the cleantech sector — mainly from the solar and electric vehicle (EV) segments — and emerging technologies such as artificial intelligence (AI) and data centers. Silver’s critical role in these economically important industries led the US government to include silver on its list of critical minerals this year.

A staunch believer in solar as a major pillar of the silver market, Krauth advised that it is “dangerous to underestimate” the level of demand yet to come from the industry. This is especially true if investors consider the projected growth of AI data centers in the US alone, and the amount of energy needed to power their operations.

“I think about 80 percent of data centers are located in the US, and their demand for electricity is expected to grow by 22 percent over the next decade. AI alone, on top of data center demand for electricity, is expected to grow by 31 percent over the next decade,” he said, adding that over the past year data centers in the US have chosen solar energy five times more than nuclear options for powering their operations.

Safe-haven investment demand magnifying silver scarcity

As a precious metal, silver tracks gold. Lower interest rates, a return to quantitative easing by the Fed, a weaker US dollar, rising inflation, increased geopolitical uncertainty — all of these factors that benefit its sister metal are also highly supportive of the silver price. And as an affordable alternative to gold, silver is attracting significant retail and institutional investment, including massive exchange-traded fund (ETF) inflows.

Ole Hansen, head of commodity strategy at Saxo Bank, posted to X on December 10:

‘Meanwhile, inflows into silver-backed ETFs have reached around 130 million ounces this year, lifting total holdings to roughly 844 million ounces—an 18% increase.’

Safe-haven investment appeal for silver is expected to grow further in 2026. Concerns over the Fed’s independence and the very real likelihood that Chair Jerome Powell will be replaced in May with someone more amenable to the Trump White House’s low interest rate demands are big factors boosting demand for silver as a portfolio hedge.

Substantial demand for silver as a safe-haven investment has already led to mint shortages in silver bars and coins and tight inventories in futures markets, primarily in London, New York and Shanghai.

For example, Bloomberg reported in late November that silver inventories at the Shanghai Futures Exchange had hit their lowest level since 2015. These shortages are resulting in rising lease rates and borrowing costs, which points to genuine challenges with delivery of physical metal rather than mere speculative positioning.

In India, where gold jewelry is traditionally a form of wealth preservation, there’s strong demand for silver jewelry as buyers look for a more affordable option with the gold price now over US$4,300 per ounce.

Demand for silver bars and silver ETFs is also on the rise in India, already the world’s largest consumer of the white metal. The nation imports 80 percent of its silver demand.

Silver price forecast for 2026

Silver’s notoriety as a highly volatile metal — it’s not called ‘the devil’s metal’ for nothing — and its recent jaw-dropping rally, has many precious metals analysts hesitating to define a clear price target for 2026.

Although the case for much higher silver prices is a strong one, there are risks that could jeopardize the metal’s upward momentum. For example, Mind Money’s Khandoshko suggested that a global economic slowdown or sudden liquidity corrections could apply downward pressure on the silver price.

“For 2026, I’d be watching industrial demand trends, Indian imports, ETF flows and any widening price gaps between trading hubs,” she advised. “I’d also pay close attention to sentiment around large unhedged short positions. If trust in paper contracts weakens again, we could see another structural shift in pricing.”

Krauth also cautioned investors to remember that silver is “famously volatile” and while “it’s been fun because the volatility has been to the upside … don’t be surprised if you get some kind of rapid drawdowns.” He views US$50 as the new floor for silver, and gave what he deems a “conservative” forecast of silver in the US$70 range for 2026.

This is in line with Citigroup’s (NYSE:C) prediction that silver will continue to outperform gold and reach upwards of US$70 for 2026, especially if its industrial side fundamentals remain in place.

Chambers referred to silver as the “fast horse” of the precious metals. While industrial demand is important, he believes retail investment demand is the real “juggernaut” for the silver price in the coming year.

1. King Copper Discovery (TSXV:KCP)

Year-to-date gain: 1,240 percent
Market cap: C$189.77 million
Share price: C$0.67

King Copper Discovery is a copper, silver and gold explorer that is developing a portfolio of projects in South America. Its primary focus is the Colquemayo project in Moquegua, Peru. In July 2024, King entered into an option agreement with Compania de Minas Buenaventura (NYSE:BVN) to wholly acquire the property.

The company has been re-logging the historic drill core from the site. The 6,600 hectare property has seen more than 20,000 meters of historic core drilling and hosts multiple porphyry targets that have been identified but had gone untested.

Highlighted drill samples show results of 2.4 percent copper and 10 grams per metric ton (g/t) silver over 237.3 meters, including 14.8 percent copper and 47 g/t silver over 31.3 meters.

In a broad corporate update on February 12, the company said it was intensifying its focus on the project and rebranded from Turmalina to reflect that. Additionally, it hired Insideo, a Lima-based environmental consulting firm, to help advance baseline studies and the drill permit process.

The company closed a C$15 million private placement with a strategic investor on September 15. It plans to use the funds for a 15,000 meter diamond drilling program at Colquemayo.

The investor now holds a 9.99 percent interest in King.

Its most recent news came on October 4, when King released an update on its work to re-log and reinterpret the historic drill core. At that time, the company had completed 61 drill cores across the Amata-Cairani and Coripuquio zones, with work on 16 cores at the Yanarico zone still ongoing.

The company said it had identified multiple new high-priority targets for its fully funded diamond drill program and was sending a field crew to validate the discoveries.

Shares of King reached a year-to-date high of C$0.90 on October 16.

2. Edge Copper (TSXV:EDCU)

Year-to-date gain: 1,233.33 percent
Market cap: C$48.94 million
Share price: C$0.40

Edge Copper is an exploration company working to advance its Zonia project in Arizona, United States. The company changed its name from Plata Latina in October.

Shares in Edge have seen steady gains throughout 2025. Its first major news came on February 27, when it announced that a Fresnillo (LSE:FRES,OTC Pink:FNLPF) subsidiary was exercising an option on the Naranjillo property to acquire Edge’s 3 percent net smelter return in exchange for C$8.61 million. Edge announced the deal’s completion on April 11.

On July 23, the company entered into a definitive agreement to acquire the Zonia project from World Copper (TSXV:WCU,OTCQB:WCUFF). The past-producing mine sits on 900 hectares of land south of Prescott, Arizona. It hosts existing infrastructure and benefits from a streamlined permitting process, requiring only state permits for Phase 1.

The acquisition closed on October 30, at which time Plata Latina changed its name to Edge Copper to reflect its new focus. Under the terms of the deal, World Copper received C$10.5 million in cash, along with a 31.3 percent ownership stake in Edge Copper, for a total aggregate value of C$22 million.

Additionally, Edge reported that, in connection with the deal, it closed a non-brokered private placement totaling US$17 million in gross aggregate proceeds, which will be directed to drilling, metallurgical tests, permitting and a feasibility study for Zonia.

The most recent news came on November 3, when the company reported it commenced its first drill program at Zonia. The 60,000 foot, AI-assisted program is designed to build on the mine’s existing indicated and inferred resource with the intention of supporting a larger and longer-life operation at the property.

According to the project page, the asset contains an indicated resource of 668 million pounds of copper with an average grade of 0.3 percent copper from 112.2 million US tons of ore, and an inferred resource of 320 million pounds of copper with an average grade of 0.26 percent from 62.9 million US tons.

Shares in Edge reached a year-to-date high of C$0.60 on October 20.

3. Amarc Resources (TSXV:AHR)

Year-to-date gain: 451.22 percent
Market cap: C$245.61 million
Share price: C$1.13

Amarc Resources is a copper explorer primarily focused on advancing its JOY district in Northern British Columbia, Canada. The 495 square kilometer property lies within the Toodoggone region and hosts the AuRORA discovery.

Exploration at the JOY district is funded as part of a May 2021 earn-in agreement with Freeport-McMoRan (NYSE:FCX), which allows Freeport to earn up to a 70 percent stake in the project.

Shares of Amarc surged early in the year after it announced the discovery of AuRORA on January 17. In the release, it outlined the high-grade potential of the deposit, highlighting an assay of 0.63 percent copper and 2.19 grams per metric ton (g/t) gold over 162 meters, including an 81 meter intersection grading 0.92 percent copper and 3.69 g/t gold, from near surface depths.

To support the discovery, in February Amarc signed an agreement with Canasil Resources for the option to acquire up to 100 percent of the Brenda property, which lies directly to the east of the AuRORA discovery.

Amarc provided more drill assays from its 2024 program on February 28. One assay from a drill hole at the AuRORA discovery graded 0.63 percent copper over 132 meters, including 0.81 percent over a 90 meter segment.

On July 16, Amarc announced the start of its summer drilling program at JOY, designed to expand the AuRORA deposit as well as test the PINE deposit and the discoveries at Twins and Canyon. The announcement also reported the expansion of the JOY district through Freeport’s options on Finlay’s PIL property, and Amarc’s acquisition of the Brenda property.

Then, on September 4, the company reported Freeport is proceeding to Stage 2 of its earn-in for the JOY property after completing Stage 1 in May for a 60 percent interest. Under the terms of the deal, Freeport now has five years to earn an additional 10 percent in the property by spending C$75 million.

Amarc announced the completion of its 2025 drill program at the JOY District on October 22. It consisted of 35 holes over 15,381 meters, with the majority at AuRORA.

After releasing rush assays from one hole at AuRORA on September 22, the company released further assays from the program on November 3. Among the highlights was one interval of 126 meters grading an average of 0.32 percent copper and 0.97 g/t gold, including a 61 meter intersection of 0.47 percent copper and 1.24 g/t gold. The company said that the program demonstrated the potential for significant and on-going deposit expansion, with grades among the highest in British Columbia.

Then on December 10, the company released additional assays, which included one highlight with 0.44 percent copper and 1.5 g/t gold over 47 meters.

Amarc noted that AuRORA remained open to further expansion to the north, east and west and that it believes that the “grade, geometry and emerging scale” of the deposit bears the hallmarks of a tier one asset.

Amarc shares climbed significantly through September, and reached a year-to-date high of C$1.35 on September 26.

4. C3 Metals (TSXV:CCCM)

Year-to-date gain: 450 percent
Market cap: C$124.86 million
Share price: C$1.32

C3 Metals is an exploration company working to advance its assets in Jamaica and Peru.

C3’s primary Jamaican asset is the Bellas Gate project, a 13,020 hectare site featuring 14 porphyry and over 30 epithermal prospects along an 18 kilometer strike. To date, drilling at the site has concentrated on a 4 kilometer zone encompassing the Provost, Geo Hill, Camel Hill and Connors prospects.

Shares of C3 gained significantly after the company announced on February 11 that it had signed an earn-in agreement with a Freeport-McMoRan subsidiary, which can gain up to a 75 percent interest in the project. Under the agreement, Freeport must contribute US$25 million in exploration and project expenditures over five years to earn the initial 51 percent interest, and an additional US$50 million over the following four years for the remaining 24 percent.

On August 13, the company commenced a drill program at the property to test multiple targets along strike focused on those with limited to no prior drilling to depths of 500 meters. C3 indicated that the program’s data would inform optimal locations for future deeper drilling.

C3 followed its drill program by initiating a 3D geophysical survey of the property, announced on October 6, with the intent of extending the area covered to 70 square kilometers and identifying drill targets beyond 700 meters in depth. The company said completion of the survey is anticipated for December, with data used to design a 2026 drill campaign.

However, exploration was put on hold in early November after Hurricane Melissa struck Jamaica, and C3 pivoted to focus on helping the community. The company noted that its workforce was safe and equipment and drill core were intact following the storm, although roads were impassable and its sites were without power.

‘We estimate it will take approximately six to eight weeks to repair and restore necessary infrastructure to continue exploration activities,’ President and CEO Dan Symons stated.

In Peru, C3 has focused on advancing its Jasperoide copper-gold project and its Khaleesi project, located 8 kilometers apart. The Jasperoide project sspans 30,000 hectares and hosts two porphyry and more than 15 skarn prospects across two 28 kilometer belts.

According to a July 2023 technical report, a resource estimate for the Montana de Cobre skarn outlined a measured and indicated resource of 51.94 million metric tons of ore with an average grade of 0.5 percent copper and 0.2 g/t gold for contained metal totaling 569.1 million pounds of copper and 326,800 ounces of gold.

As for its Khaleesi project, the company announced in February that it discovered a 1,900 meter by 650 meter copper-molybdenum soil anomaly and a 470 meter by 400 meter high-grade copper-zinc anomaly based on results from soil sampling.

C3 has carried out exploration work at the property throughout the year, and in August reported that anomalies detected through magnetic, induced polarization and magnetotelluric surveys coincided with the February discoveries.

The most recent exploration update for the property came on September 9, when C3 announced it was commencing a 14 hole, 6,300 meter maiden drill program designed to evaluate the prospects discovered through the surveys.

Shares in C3 reached a year-to-date high of C$1.35 on December 10.

5. Sterling Metals (TSXV:SAG)

Year-to-date gain: 448.57 percent
Market cap: C$74.13 million
Share price: C$1.98

Sterling Metals is an exploration company with a trio of projects in Canada.

Over the past year, its primary focus has been on exploration at its brownfield Soo Copper project in Ontario, which it renamed from Copper Road in May. The 25,000 hectare property hosts two past-producing copper mines and has the potential for larger intrusion-related copper mineralization.

The company’s other two projects consist of Adeline, a 297 square kilometer district-scale property with sediment-hosted copper and silver mineralization along 44 kilometers of the strike, and Sail Pond, a silver, copper, lead and zinc project that hosts a 16-kilometer-long linear soil anomaly. Both properties are located in Newfoundland and Labrador.

On January 15, Sterling announced results from a 3D induced polarization and resistivity survey that covered an area of 5 kilometers by 3 kilometers and revealed multiple high-priority drill-ready targets.

The company used the survey results, along with historical exploration, to inform a drill program at the site.

On August 7, Sterling reported it commenced Phase 2 drilling at the Soo Copper project. The program is designed to test areas defined through analysis of the Phase 1 drill program, historic drill data and geophysical interpretations.

The company announced a discovery in the first hole on September 29, with assays delivering the highest copper grades encountered at Soo Copper. Grading from the hole returned values of 0.43 percent copper over 336 meters, starting at 5 meters from surface, and included one intersection with 6.8 percent copper over 9.15 meters and another with 21.3 percent over 0.6 meters which also returned a grade of 196 g/t gold.

The last exploration update for the year came on October 8, when Sterling announced it had discovered large-scale bornite in outcrop from soil sampling results. The new target corridor, which it named Gimlet, is located about 2 kilometers south of its recent discovery.

On November 26, the company announced that it had closed a non-brokered private placement, raising gross proceeds of C$14 million. It intends to use the funds to rapidly advance the project, allocating a minimum of C$6.2 million to project spending next year, with the majority of that dedicated to drilling.

Shares in Sterling reached a year-to-date high of C$2.84 on September 29, coinciding with the high-grade discovery.