SIL hit a 52-week high, surging 82.9% from its low as silver prices climb amid global uncertainty and supply strain.
Silvercorp Metals offers strong margins, robust balance sheet, and trades at an attractive valuation versus peers, making it a compelling value play in silver mining. The company has prioritized reinvestment and expansion over dividends, positioning itself for significant future growth as new projects come online. Key risks include heavy exposure to China and associated political uncertainties, though diversification efforts are underway and could take time to materialize.
Global X Silver Miners ETF has outperformed due to silver's industrial appeal and a favorable gold-silver ratio, but the SIL/iShares Silver Trust ETF gap is now narrowing. SIL's higher expense ratio (0.65%), greater volatility, and smaller AUM make SLV increasingly attractive for risk-adjusted exposure. Silver is a mining byproduct; in this case, of Canadian companies; therefore, it is partially influenced by Trump's tariff escalation.
Silver's recent breakout is driven by surging demand from utility-scale solar, especially in China, which is aggressively expanding solar capacity for geopolitical reasons. As the US shifts away from solar, China's energy transition pushes silver demand higher as solar installations soar, outpacing global peers. The Sprott Silver Miners & Physical Silver ETF offers diversified exposure to silver miners and physical silver, with a focus on Canadian companies.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
SIL surged to a 52-week high, gaining 77.6% from its low as silver prices climb on safe-haven demand and falling rates.
Strong industrial demand brings the precious metal's highest price levels in more than a decade.
Silver prices have soared to their highest levels in more than 13 years, surpassing $35 per ounce. Late morning on Thursday, silver traded up 3.5% at $35.87, after topping $36 earlier in the session, the highest level since February 2012.
Silvercorp Metals Inc. is rated a "Buy" due to its strong financial position, cost-efficient operations, and positive outlook for silver prices. The company reported significant revenue and production increases in FY2025, driven by rising metal prices and efficient mining operations. Silvercorp's strategic focus includes generating free cash flow, organic growth, asset acquisitions, and responsible mining, enhancing shareholder value.
The strength of the rally in gold prices is outpacing that of silver so far this year. But here could be a rally waiting in the wings for the white metal.
Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations.
Asset allocation is crucial for a balanced portfolio; the Global X Silver Miners ETF offers diversification by adding silver, which often moves independently of the indexes. Silver is not just a precious metal but essential for industrial applications, making it a valuable investment with growing demand in electronics, medicine, and more. SIL's top holdings include royalty companies like Wheaton Precious Metals Corp. and Osisko Gold Royalties, providing exposure to both silver and gold without direct mining risks.