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Silver rallies on deficit outlook, with India stocks set to benefit
Silver is in a sixth consecutive year of supply deficit, and 2026 shortfall is pegged at 46.3 million ounces.
Silver has extended its 2026 rally, with Indian coverage pointing to a persistent global supply deficit and rising industrial demand as key drivers. The article links a near-term boost to a U.S. decision that would increase Treasury bond buybacks, which helped lift silver by roughly 5 to 6% around mid-August, while the metal traded at about ₹245,000 per kg by 21 August.
The piece says the deficit story is bigger than any single policy headline, citing a projected 2026 shortfall of 46.3 million ounces and the structural difficulty of quickly expanding supply. It notes that nearly 70% of silver is mined as a by-product of base-metal production, limiting how fast producers can increase output when prices rise.
Demand, meanwhile, is said to be increasingly industrial, with industrial use accounting for close to 60% of silver consumption. The Silver Institute is cited for three growth engines for coming years, data centers and AI, solar, and electric vehicles, casting silver as both a monetary hedge and an input that is hard to substitute.
To express the theme through Indian equities, the article highlights Hindustan Zinc as a listed primary silver proxy, calling it the only integrated and listed primary silver producer in India. It also cites the company’s rank among global producers and mine-scale developments, adding financial color including strong latest-quarter growth: revenue from operations up 77% year-on-year to ₹13,747 crore, and EBITDA up 109% to ₹8,074 crore.
Latest closeSilver $64.83 ▼0.1%