July Silver futures rallied on projected supply deficit.

July Silver futures closed higher for a 6th straight session, extending an 18.2% rally since early May amid tightening global supply dynamics. The Silver Institute projects 2026 will mark the 6th consecutive annual supply deficit, estimated at 46 to 47 million ounces. With 70% of global mine output derived as a byproduct of other metals, supply remains highly inelastic. Concurrently, industrial applications like solar panels and electric vehicles account for 60% of annual demand. Supply chain pressures are intensifying as China implements new export licensing requirements, elevating silver to a strategic material status. This limits the flow of Chinese refined silver to Western markets, fundamentally shifting global pricing leverage.