LBMA data shows that silver finished the third quarter only moderately higher, but the calm headline concealed a much wider trading range and continued changes in industrial demand.
Silver rose 4.26% during the third quarter of 2026, moving from US$58.25 per ounce on 1 July to US$60.73 at the end of September, according to the London Bullion Market Association’s Q3 market report. That modest closing gain masks a highly volatile quarter.
The range mattered more than the quarter-end number
The LBMA report recorded a quarterly low of US$55.29 on 17 July and a high of US$70.26 on 28 August—a low-to-high range of about 27%. Silver continued to react to many of the same macro forces as gold, including inflation expectations, interest rates, geopolitical risk and investor positioning.
Industrial substitution became a visible theme
Silver also faced a metal-specific issue: reports that some solar manufacturers were replacing part of their silver use with copper. Silver is both a precious metal and an industrial input, so changes in fabrication technology can affect demand alongside investment flows.
The Silver Institute’s 2026 outlook still anticipated a sixth consecutive annual market deficit. It forecast stronger retail investment, a 1.5% increase in total supply to around 1.05 billion ounces, and a 2% decline in industrial fabrication to roughly 650 million ounces as photovoltaic manufacturers continued thrifting and substitution.
London vault inventories increased
Silver held in London vaults increased 3.22% during the quarter to 28,985 tonnes, valued by LBMA at approximately US$56.6 billion. Gold vault holdings also rose, reinforcing the importance of looking at physical-market data as well as price movements.
Practical points for silver buyers
- Silver can move more sharply than gold over short periods.
- Industrial innovation can change demand per solar panel even while total solar installations grow.
- A market deficit does not guarantee a continuously rising price; inventories, investment flows and macro conditions also matter.
- Check the live NPR-per-gram price and the complete fee calculation before placing an order.
This article is provided for market education only and is not investment advice or a forecast of future silver prices.