RBC Capital Markets says silver is heading into another year of structural deficit, with inventories at an all-time low and investment demand showing no signs of abating, though the brokerage sees limited near-term relief. The analyst, Marina Calero, highlighted that the market closed 2025 with a 242 million ounces deficit and expects it to remain undersupplied in 2026. While higher prices could trigger some response, secondary supply and weaker jewellery demand may ease the deficit by roughly 50Moz, still insufficient to close the gap. Mine supply is also unlikely to respond meaningfully soon due to permitting hurdles, aging assets, and limited new discoveries. Calero sees supportive macro conditions keeping investment demand firm, noting the "right macro ingredients" like a weaker dollar and easier monetary policy are in place. She expects the gold-silver ratio to hold around 60-65x as tight physical conditions persist.

Industrial demand, representing about 60% of total silver consumption in 2025 and now accounting for roughly 30% of average solar cell costs, remains the biggest question mark. This has prompted accelerated thrifting and substitution efforts, potentially leading to demand destruction. Despite the constructive near-term setup, RBC ultimately favours gold producers, noting silver equities "remain attractively valued compared to the broader market" even though many names are pricing in bullish silver assumptions. RBC highlights silver equities' premium to gold producers is above the historical average, with producers pricing in $100/oz and royalties at $144/oz, above spot levels of $90/oz. Valuation, coupled with expected upside in gold, leaves RBC favouring pure-gold producers.

The analyst concludes that a silver-free solar technology could be the final cure to high prices, writing that solar accounted for 17% of total demand (c.190Moz in 2025). While the structural deficit points to sustained upward pressure, the outlook for silver equities remains mixed due to valuation concerns and the risk of industrial demand erosion.