MTI(US:MTX) 247Wallst·2026-01-05 13:31Core Insights - The US Geological Survey (USGS) has identified silver as a critical mineral due to its importance in technology, geopolitics, and economic factors, with prices projected to increase by over 130% by the end of 2025 [2][5]. Industry Overview - Silver production has consistently fallen short of demand over the past seven years, with significant consumption driven by solar panels and emerging technologies like AI data centers [3]. - The futures market has historically suppressed silver prices, but recent shifts have led to physical demand taking control, resulting in increased prices due to central banks and ETFs buying silver amid fears of currency debasement [4]. Market Dynamics - China controls 70% of the global refined silver supply, and as of January 1, 2026, silver will be included in China's rare-earth minerals export-control protocols, further tightening market availability [5]. - The addition of silver to the USGS Critical Minerals list elevates its status as a strategic asset, prompting federal policies to support domestic production and supply chain integrity [6]. Investment Opportunities - Sprott Physical Silver Trust (PSLV) is highlighted as a unique ETF that allows investors to redeem shares for physical silver, currently holding 210.7 million ounces valued at $13.9 billion [7][10]. - Notable companies in the silver sector include: - Pan American Silver (PAAS): Anticipated production of 25 million ounces in 2025, with a recent acquisition enhancing its operational capacity [12]. - Hecla Mining (HL): The largest silver producer in the US, with a forecasted output of 17 million ounces in 2025, despite being considered undervalued [15]. Performance Metrics - PSLV has shown a 1-year return of +145.24%, while PAAS has a 1-year return of +154.59% and HL has a 1-year return of +259.59% [8][13][15].