Silver dips to £48.52 an ounce as the 2026 deficit widens despite falling solar demand

Silver eased to around £48.52 a troy ounce today, or roughly £1.56 a gram before dealer costs, according to The Gold Bullion Company and priceofsilver.today. That leaves the metal down about 4.9 per cent over the past month and 13.2 per cent so far this year, even though it is still up around 41 per cent over the past twelve months. With gold at about £3,235 an ounce, the gold to silver ratio sits near 66.6, below its two year average of roughly 78, which suggests gold is comparatively cheap next to silver by recent standards.

The pullback comes despite, not because of, a tightening physical market. Analysis from Discovery Alert points to a 2026 global silver deficit of around 46.3 million ounces, up from 40.3 million in 2025, even as solar panel makers are expected to cut silver consumption by about 19 per cent this year. Rather than losing their appetite for silver, manufacturers are using less of it per panel as high prices push them toward thinner paste loading, while investment demand and inelastic mine supply keep the deficit growing.

For UK buyers, silver bullion carries 20 per cent VAT, unlike investment grade gold coins and bars, so working out the all-in cost, spot plus premium, VAT and delivery, matters more than the headline price. This is market information, not financial advice.