The first month of the new year has put stocks on a roller coaster that reminds investors that volatility isn’t going away anytime soon. But gold and silver continue ignoring the noise and moving higher. In fact, at the close of markets on Jan. 22, the spot price of silver cracked the $95 mark.
That means silver has climbed over 213% in the last 12 months. That rivals many of the hottest technology stocks. But can the rally continue, and how can investors get involved if they don’t want to own physical silver?
Can the Rally in Silver Continue?
That may be the wrong question, or at least not the first question. The first question may be: Why is silver moving to new highs? Many analysts point to supply and demand. Silver is needed for applications in defense and space. Not to mention most of the fastest-growing technology trends like electric vehicles,
That gets to the second question: can the rally continue? The answer is absolutely. There’s only so much silver; it’s difficult to mine, and it takes time to get to market.
More importantly, however, like gold, silver is being purchased by central banks and is also being bought by large, private sector investors. These investors aren’t speculating in silver. They're buying silver and gold due to concerns about fiscal sustainability, monetary credibility, currency debasement, and geopolitical unrest.
Mining Stocks Give You a Leveraged Way to Own Silver
For investors who want exposure to silver without the hassle of storage and security, mining stocks offer an attractive alternative. Better yet, these stocks provide leveraged exposure to silver prices.
That is, when silver moves up 10%, mining stocks often move 15% to 20% or more because higher prices flow directly to the bottom line. With that in mind, here are three silver mining stocks positioned to capitalize on this historic rally.
Pan American Silver
Pan American Silver Corp. (NYSE: PAAS) operates one of the largest primary silver mining portfolios in the world, with assets spread across Mexico, Peru, Canada, Argentina, and Bolivia. The company produced approximately 20 million ounces of silver in 2024, making it a pure-play option for investors seeking direct exposure to rising silver prices.
What sets Pan American Silver apart is its diversified asset base and operational scale. The company's flagship operations include the La Colorada mine in Mexico and Cerro Moro in Argentina. With silver prices surging past $95, Pan American's profit margins have expanded dramatically.
The company also produces gold, zinc, and copper as byproducts, providing additional revenue streams that help offset operational costs. For investors seeking an established operator with proven reserves and the infrastructure to benefit immediately from higher silver prices, PAAS stock offers compelling upside potential as this rally continues.
First Majestic Silver
First Majestic Silver Corp. (NYSE: AG) stands out as one of the few remaining pure-play silver producers, with all of its operations concentrated in Mexico. The company operates three producing mines and has consistently maintained production levels around 12 to15 million silver-equivalent ounces annually.
What makes First Majestic Silver particularly interesting for investors is its vertical integration strategy. First Majestic owns its own bullion store where it sells coins and bars directly to consumers, allowing the company to capture retail premiums during price rallies like the current one. The company has also been disciplined about capital allocation, focusing on high-grade deposits and maintaining relatively low all-in sustaining costs.
With silver crossing $95, First Majestic's margins are expanding rapidly. The company's focused approach on silver, rather than diversifying into other metals, gives investors pure exposure to silver price movements, making it an ideal choice for those bullish on the white metal's continued ascent.
And here’s where the leveraged part comes in. The spot price of silver is up around 213%, but AG stock is up 331% over the same time.
Wheaton Precious Metals
Wheaton Precious Metals Corp. (NYSE: WPM) operates under a fundamentally different business model than traditional miners; it's a streaming company. Rather than operating mines directly, Wheaton Precious Metals provides upfront capital to mining companies in exchange for the right to purchase silver and gold at significantly reduced prices over the life of the mine.
This model offers investors several advantages. Wheaton avoids the operational risks, capital expenditures, and permitting delays that plague traditional miners. The company maintains industry-leading profit margins, often exceeding 60%, because it purchases metals at fixed, below-market prices.
With agreements spanning over 20 mines across the Americas, Wheaton provides diversified exposure without concentration risk. As silver prices soar past $95, Wheaton's existing streaming agreements become increasingly valuable since the company still purchases at predetermined prices far below spot.
For conservative investors seeking silver exposure with lower operational risk and superior margins, WPM represents a compelling option in this historic rally. WPM stock is up 143.87% in the last 12 months.