The prospects for the Zacks Mining – Silver industry look promising, driven by rising silver prices. Global industrial demand for silver is expected to account for a major part of the total demand, which is projected at around 1.15 billion ounces. However, supply is expected to be lower, suggesting that the silver market is headed for a fifth consecutive year of deficit, which is likely to bolster prices.
We suggest keeping tabs on companies like Fresnillo FNLPF, Endeavour Silver Corporation EXK and Avino Silver & Gold Mines Ltd. ASM, which are poised to benefit from solid projects, improved operational efficiency and disciplined cost management.
About the Industry
The Zacks Mining – Silver industry comprises companies that are engaged in the exploration, development and production of silver. These include big and small players operating mines of widely varying types and scales. Silver-bearing ores are mined by open-pit or underground methods, and then crushed and ground. Miners continually look for opportunities to expand their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets, internally and through acquisitions. Only 20% of silver comes from mining activities, wherein silver is the primary revenue source. The balance comes from projects, wherein silver is a by-product of mining other metals, such as copper, lead and zinc. Thus, several companies in the silver mining industry are engaged in mining other metals as well.
What’s Shaping the Future of the Mining-Silver Industry
Demand to Remain Strong: Per the Silver Institute, total silver demand is expected to dip 1% to 1.148 billion ounces in 2025. Industrial use remains the largest component of silver demand and is projected to be around 677.4 million ounces in 2025, accounting for roughly 59% of the total demand. One of the main drivers is the solar energy industry. Usage of silver in photovoltaic applications has soared over recent years due to the increasing global adoption of solar technology, advances in solar cell design and the global push for renewable energy. Silver plays a crucial role in solar cells due to its unmatched electrical conductivity. Silver demand in electrical and electronic applications remains supported by rising usage in 5G infrastructure, electric vehicles and consumer electronics. Silver plays a key role in these areas due to its conductivity, reliability in compact and high-performance components. Silver coin and net bar demand is expected to gain 7% this year to 204.4 million ounces, recovering after two years of weakness, and particularly the five-year low of 190.9 million ounces in 2024. Demand for jewelry is, however, expected to be down 6%, reflecting low demand in India amid high prices.
