There may be a break in the ongoing rise in silver prices for some time. Because the biggest reason behind the boom was its low supply. The rise in prices was due to low availability of silver in the market as compared to the demand. But now this situation is gradually changing.

According to a new report, the silver supply problem is easing and the market could be oversupplied in 2027. That means the silver market may move from a deficit to a surplus position. Due to this, it may be difficult to increase the price of silver significantly in the near future.

Silver underperformed compared to gold

Silver has underperformed gold over the past few weeks, Metals Focus reports. Gold prices hover around $4,000 an ounce, while silver prices have dipped to their lowest level this year, in the early $50 range. The main reason for the fall in silver prices is the growing economic and political tension in the world.

Silver supply may exceed demand in 2027

According to the report, the margin of reduction in silver supply may decrease further this year. At the same time, it is expected that more silver will be available in the market in 2027. This means that the possibility of sudden large price increases due to silver shortage in the near future may be reduced. However, if the chances of a rate hike in 2027 diminish, silver prices may regain support. In such a situation investors can start investing money in silver again. But currently there are several challenges in the market, which may put pressure on its prices.

Why is silver weaker than gold?

Various factors affect the price of gold and silver. Gold is being supported by purchases by world central banks and demand for safe havens. Large investors prefer to invest money in gold during times of economic and political uncertainty.

At the same time, a large part of silver demand comes from industries. It is used in making electronics, solar panels and many other products. Therefore, when there is a slowdown in industrial activities, the demand for silver is also affected.

Apart from this, the purchase of jewelery and silverware is also decreasing due to high prices. Solar panel manufacturing companies are also trying to reduce the use of silver and replace it with other materials. This is increasing pressure on industrial demand.

The stock of silver in the world market is increasing

According to the report, the total stock of silver in the London treasury rose to 932 million troy ounces by the end of September. This is the highest level in nearly four years. However, if we exclude silver held in Exchange Traded Products (ETP), the stock of silver available for trading is about 267 million ounces. This is nearly double the low recorded in October 2025. A

Silver stocks have also increased in the major commodity exchanges of the US, China and India in the last few months. One of the reasons is the declining interest of investors. In the year 2025, investors invested huge amounts in silver related ETPs. Due to this, a large portion of the silver available in the market was deposited for investment. But about 60 million ounces of silver have been extracted from these products this year. Due to this, the availability of silver in the market has increased.

There is also a sharp decline in the purchase of silver coins

Low interest among people investing in silver is also affecting coin sales. According to a survey by Metals Focus, sales of silver bullion coins from major mints in the second quarter of 2026 fell by more than 80 percent compared to the first quarter. This was the lowest level of any quarter since the survey began in 2010.