Industry outlook remains bright
The silver mining sector is entering a favorable cycle as strong demand collides with limited supply. Global demand is projected at around 1.15 billion ounces in 2025, with industrial usage—driven by solar, electronics, and electric vehicles—making up nearly 60% of consumption. Supply is expected to fall short for the fifth consecutive year, reinforcing expectations of higher prices.
Key players to watch
Analysts highlight four companies poised to benefit from these conditions:
- Pan American Silver (PAAS): One of the largest silver producers, supported by diversified assets across the Americas.
- Hecla Mining (HL): Focused on high-grade reserves in North America with a track record of operational efficiency.
- Vizsla Silver (VZLA): An exploration-driven miner with promising projects in Mexico.
- Avino Silver & Gold Mines (ASM): Expanding production capacity and targeting improved cost management.
All four companies are working to enhance efficiency, expand resources, and keep costs under control despite rising energy and labor expenses.
Demand drivers
Silver’s role in the solar energy industry is a major catalyst, with usage in photovoltaic cells rising sharply due to advances in design and global renewable adoption. The metal’s unmatched conductivity also makes it critical for 5G networks, EVs, and consumer electronics. On the investment side, exchange-traded products attracted 95 million ounces of inflows in the first half of 2025, already surpassing last year’s total. Coin and bar demand is set to grow 7% this year, while jewelry demand weakens under high prices.
Prices and profitability
Silver prices have surged—up 22% in 2024 and another 33.7% so far in 2025—supported by geopolitical risks and tightening supply. Despite a modest 2% increase in global production this year, total supply of 1.03 billion ounces remains far below demand. The resulting 117.6 million-ounce deficit signals long-term bullishness. While miners face inflationary pressures, particularly from energy and wages, many are investing in technology to improve margins.
Valuation and performance
The silver mining industry has outperformed broader markets, gaining 42% in the past year, compared with a 17.2% rise in the S&P 500. On a valuation basis, the sector trades at an EV/EBITDA multiple of 11.79X, below the S&P 500’s 17.66X and the Basic Materials sector’s 12.73X, suggesting room for re-rating as earnings strengthen. With Zacks assigning the industry a Rank #16 out of 246, it sits comfortably in the top 10% of sectors, reflecting strong near-term prospects.
