Silver Steadies at $76.89 as Deficit Story Holds Firm Beneath the Volatility
NEW YORK (May 6) Silver is down roughly 20% from its pre-conflict highs, but the sixth consecutive annual supply deficit and a recovering gold-silver ratio are keeping long-term buyers interested.
Silver is trading at $76.89 today, holding near recent lows as the market continues to digest the twin headwinds of elevated US interest rates and an oil-shock-driven inflation scare. The metal has fallen approximately 20% since the Middle East conflict began in late February, as the same macro forces weighing on gold — a hawkish Fed, a firm dollar, elevated yields — hit silver harder given its smaller market and industrial exposure.
The fundamental case, however, hasn't changed. The Silver Institute confirmed last month that the market is heading for its sixth consecutive annual deficit in 2026, with a shortfall of 67 million ounces forecast for the year. Above-ground inventories continue to be drawn down to bridge the gap. Industrial demand from data centers, AI infrastructure, and automotive electronics is providing a partial offset to the well-publicized decline in solar panel silver intensity, where manufacturers have been actively reducing silver content per cell through thrifting.
ING analysts have noted that silver should benefit from the same macro tailwinds expected to support gold — namely a softer dollar and eventual Fed easing — and that "historically, silver has outperformed gold during easing cycles."
J.P. Morgan's Gregory Shearer has flagged that the long-term risk for silver isn't demand destruction today but rather the broader adoption of silver-free photovoltaic technology — a risk that's real but still years from materially reshaping the supply-demand balance. For now, the $70 area remains the key support level traders are watching. A clean hold there, combined with any softening in the jobs data this week, could set up a meaningful recovery toward $80.
