Silver Miners Surge as Metal Hits Record on Critical Mineral Status
Prices catapult to $115 per ounce as US designates silver strategic asset amid supply deficit
Silver mining stocks have surged dramatically this week as the precious metal smashed through the $100-per-ounce barrier to reach an all-time high of $115.08 on January 26, marking its most explosive 24-hour gain since 1985. The rally follows the US Geological Survey's addition of silver to its Critical Minerals List, elevating the metal from commodity status to strategic asset classification.
Pan American Silver, the largest primary silver producer, has gained 18% over five trading days, climbing from $57.21 to $64.82 by January 26. The stock has now rallied nearly 196% over the past 52-week period, according to historical price data. Barrick Gold, which maintains significant silver exposure alongside its gold operations, has advanced approximately 32% over the past month.
The designation as a critical mineral opens the door to federal support for domestic supply chains and expedited permitting for major mining projects. This regulatory tailwind arrives as the global silver market endures its sixth consecutive year of structural deficit, with industrial demand outpacing mine production by 95 million ounces annually.
Silver prices have surged 147% throughout 2025, with an additional 40% gain in the opening weeks of this year. The rally reflects both safe-haven flows amid broader market uncertainty and fundamental supply constraints. Technology sectors now consume 60% of all global silver production, with demand projected to increase through 2030 driven by expansion in solar photovoltaic capacity, electric vehicle manufacturing, and AI infrastructure development.
Pan American Silver reported attributable production of 22.8 million ounces in 2025, exceeding updated guidance with a record 7.3 million ounces in the fourth quarter. The company forecasts 2026 production between 25.0 million and 27.0 million ounces, with all-in sustaining costs projected between $15.75 and $18.25 per ounce. First Majestic Silver achieved record production of 15.4 million ounces last year, an 84% increase from 2024, while Silvercorp Metals reported record revenue of $126.1 million for its fiscal third quarter, up 51% year-over-year.
Analysts anticipate silver prices could double in 2026 as supply constraints intensify and China's export restrictions create additional market disruption. The combination of critical mineral designation, persistent supply deficits, and expanding industrial applications has prompted investors to reassess valuations across the silver mining sector, with production-focused companies positioned to benefit from sustained price strength.