Core Viewpoint - Silver prices have recently surged, breaking $83 per oz, driven by high demand and limited supply, with expectations for continued price increases into 2026 [1][6] Silver Market Dynamics - The mining sector is attempting to increase production, but raw silver ore requires refining to be usable in various applications, indicating that refinery capacity is crucial for market prices [2][12] - COMEX raised margin requirements, leading to a temporary price pullback in silver, which some analysts believe benefited large banks with significant short positions [4][10] - The physical demand for silver continues to exceed supply, with prices rebounding to over $77 per oz [6][10] China’s Influence - China controls 70% of the global refined silver supply and has implemented new laws that will restrict silver exports starting January 1st [9][10] - During a recent sell-off, while US traders sold silver at $75, Chinese buyers were willing to pay up to $90 per oz, indicating strong demand despite price fluctuations [10] Company Insights - **Freeport-McMoRan (NYSE: FCX)**: Known for its extensive mining operations, it produced 3.8 million oz. of silver in 2024 and is expected to focus more on silver extraction and refining in 2026 due to rising silver prices [13][12] - **Pan American Silver (NYSE: PAAS)**: Targeting up to 25 million oz. of silver production in 2025, the company is expanding operations through a $2.1 billion acquisition [14][15] - **First Majestic Silver (NYSE: AG)**: Projecting 15.3 million oz. of silver production for 2025, the company has seen significant production increases and is pursuing aggressive growth strategies [16][17] - **American Resources Corporation (NASDAQ: AREC)**: Focuses on critical elements for lithium-ion batteries and semiconductors, with interests in silver refining as part of its supply chain operations [18][19]