Core Insights - Silver is experiencing a significant bull run, with prices recently reaching $64 an ounce, translating to a year-to-date gain of 114.8%, outperforming gold's 63.9% rally [2][3] - The macro environment for silver is expected to improve in 2026, driven by a dovish Federal Reserve, strong demand, and a persistent supply deficit [3] - The U.S. Geological Survey has classified silver as a critical mineral, which may lead to policy support and efforts to strengthen domestic supply chains [5] Silver Market Dynamics - The total global silver supply is projected to rise by 1% in 2025 to 1.022 billion ounces, while total demand is expected to drop by 4% to around 1.117 billion ounces [6] - The silver market is anticipated to record a deficit of approximately 95 million ounces in 2025, marking the fifth consecutive year of deficit [7] - Industrial demand for silver is expected to decline by 2% in 2025 due to global economic uncertainties [6] Growth Drivers - The increasing adoption of solar technology is driving demand for silver in photovoltaic applications, with global renewable power capacity expected to double between 2025 and 2030 [8] - The electrification of the automotive industry is boosting silver demand, particularly in battery electric vehicles [9] - Rapid digitalization and the rise of AI are emerging as new demand drivers for silver [10] Featured Companies - **Fresnillo plc**: The company is acquiring Probe Gold, which has the potential to produce over 200,000 ounces annually. The Zacks Consensus Estimate for Fresnillo's earnings indicates a year-over-year growth of 380.6% for 2025 [12][14] - **Hecla Mining**: The company is focusing on reducing debt and enhancing operational efficiency. The Zacks Consensus Estimate for Hecla's earnings indicates a year-over-year growth of 245.5% for 2025 [15][18] - **First Majestic Silver**: The acquisition of Gatos Silver is expected to boost free cash flow and production. The Zacks Consensus Estimate for First Majestic's earnings indicates a year-over-year growth of 279% for 2025 [19][22]