Silver mining stocks are moving sharply higher today, as prices for the outperforming industrial metal continue to set new highs. Silver for December delivery (SIZ24) peaked earlier at $35.07, the highest price for a most active contract since October 2012. Against this backdrop, silver-focused miners like First Majestic Silver (AG), Pan American Silver (PAAS), Fortuna Silver (FSM), and Hecla Mining (HL) are all up 3-4% at midday.
Silver futures are extending their bullish run today due to a combination of strong industrial demand and geopolitical tensions. Robust demand from market segments like electric vehicles and photovoltaics is expected to support silver's upward momentum. Additionally, the festival season in India has increased physical market demand for precious metals, including silver.
Analysts at Citi now predict that silver could reach $40 per ounce by the end of the year, driven by supply deficits. Overall, the outlook for silver remains bullish, supported by both industrial demand and its role as a safe-haven asset amidst global uncertainties.
Among individual silver mining stocks, Endeavour Silver (EXK) is up more than 6% to lead today’s rally. The stock boasts a remarkable one-year return of 124%, significantly outperforming competitors like First Majestic and Pan American Silver.
Analysts rate the stock a “strong buy” overall, though EXK shares have now outpaced their mean price target of $4.93. Likewise, after the impressive market performance, the company's EV/EBITDA ratio of 54.46 and price/book ratio of 2.95 imply that EXK stock may be overvalued.
For investors seeking exposure to additional upside in silver - who aren’t so eager to take on the inherent risks in the mining industry - here are two ETFs to consider.
This article was generated with the support of AI and reviewed by an editor. For more information please view the Barchart Disclosure Policy here.
On the date of publication, Edited by Elizabeth Volk did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
