The World Silver Association has forecasted a sixth consecutive year of supply deficit in the global silver market for 2026, with the gap expected to widen by 15% to 46.3 million troy ounces. Despite an 18% increase in demand for silver bars and coins, overall consumption is projected to decline by 2% due to reduced demand from industrial, photographic, jewelry, and silverware sectors. Supply is anticipated to decrease by 2%, driven by lower mining output and reduced hedging, though partially offset by a 7% rise in recycling. The association remains optimistic about silver's prospects for the rest of 2026, despite geopolitical tensions in the Middle East. It predicts that monetary tightening to control energy inflation will be temporary, and even if conflicts persist, lower real bond yields could enhance demand for precious metals like silver and gold. The report suggests that renewed safe-haven demand could further boost interest in these metals.