Global silver supply deficit crisis

Fresnillo reports 11.4% drop in first-half silver production

The global silver market experienced a supply deficit for the fifth consecutive year in 2025.

In 2025, the global silver market recorded its fifth consecutive year of supply deficit. This trend follows patterns where silver production is heavily tied to the mining of other metals, as approximately 75% of global silver is obtained as a byproduct of lead, zinc, copper, and gold mining.

Production levels have been impacted by shifts in the mining sector. For instance, Fresnillo, the world's largest primary silver producer, reported an 11.4% decrease in its silver production during the first half of the year compared to the previous year, falling to 22 million ounces. This decline was partly attributed to the termination of a financial production agreement known as Silverstream, which accounted for approximately one-third of the company's 2.8 million ounce production drop.

The supply landscape remains constrained because silver production decisions are often shaped by the economic conditions of other metals rather than silver prices alone. Experts have noted that silver supply tightness is expected to continue in the short term, citing the significant time required for new mine investments and the difficulty of increasing production at existing sites at the desired speed.