4 Silver Mining Stocks to Buy to Ride the Solid Industry Trends

Industry Overview - The Zacks Mining - Silver industry is experiencing a promising outlook due to a strong rally in silver prices, with global industrial demand projected at approximately 1.15 billion ounces [1][4] - The industry comprises companies involved in the exploration, development, and production of silver, with only 20% of silver sourced from mining activities where it is the primary revenue source [3] - The industry is currently facing a persistent demand-supply gap, with projected demand exceeding supply, leading to a fifth consecutive year of deficit [6] Demand Drivers - Industrial demand for silver is expected to dominate, accounting for around 59% of total demand, driven by the solar energy sector and advancements in technology [4] - Silver's inclusion in the critical minerals list by the U.S. Geological Survey enhances its strategic importance, potentially leading to increased investment and policy support [4] Price Trends - Silver prices have surged approximately 74.5% this year, reaching a peak of $54.48 on October 17, 2025, driven by economic uncertainties and rising investor demand [5] - Current prices are around $50, supported by expectations of a Federal Reserve rate cut amid signs of economic weakness [5] Company Performance - Fresnillo (FNLPF) has a strong project pipeline, with a targeted silver equivalent production of 91-102 million ounces for 2025 and a recent acquisition of Probe Gold [17][18] - Pan American Silver (PAAS) has rationalized its portfolio post-Yamana acquisition and is expected to increase silver production by approximately 35% annually through the Juanicipio mine [22][23] - Hecla Mining (HL) reported record revenues of $410 million and a 95.8% stock appreciation in the last three months, with a focus on operational excellence and debt reduction [25][27] - First Majestic Silver (AG) achieved a 39% year-over-year increase in silver-equivalent production, bolstered by the acquisition of Gatos Silver, leading to record revenues of $285.1 million [29][30] Market Performance - The Mining-Silver Industry has outperformed the Basic Materials sector and the S&P 500 composite, with a collective gain of 79.3% over the past year compared to 8.5% and 14.4% respectively [10] - The industry currently trades at a trailing 12-month EV/EBITDA ratio of 14.66X, which is lower than the S&P 500's 18.24X, indicating potential value [13]