Svmuu News: In its annual outlook released on Wednesday, the World Silver Association maintained its previous view that the global silver market will face a supply deficit for the sixth consecutive year. The report noted that the supply deficit is expected to widen by 15% to 46.3 million troy ounces in 2026. Although demand for silver bars and coins is projected to grow by 18%, declines in industrial, photographic, jewelry, and silverware demand are expected to result in a 2% drop in total consumption. Supply is forecast to decrease by 2%, primarily due to a slight decline in mining output and reduced hedging, though this will be partially offset by a 7% increase in recycling. The report states that while the war in Iran casts a shadow over the short-term price outlook, it maintains a “constructive view” on silver for the remainder of 2026. The association anticipates that the conflict in the Middle East will be contained and that monetary policy tightening to curb energy inflation will be temporary. Even if the war persists, concerns over weak growth and fiscal strains may suppress real bond yields, thereby boosting interest-free precious metals such as silver and gold. The report states: “Coupled with a recovery in safe-haven demand following cyclical market corrections, this should reignite interest in gold and silver.” (Jin Shi)