Silver’s surge spells opportunity for small-cap equities
Wed June 11 2025
Silver’s impressive 26% gain in 2025 isn’t just a boon for bullion—it’s breathing new life into the small-cap mining space. With the metal now trading near $36.10 an ounce and UBS forecasting a climb to $38 or even $40 by year-end, investor interest is picking up in junior explorers and producers that have long been overshadowed by gold-focused names.
While gold remains the heavyweight in the precious metals world, silver’s affordability and tighter market dynamics are giving it an edge. The silver market is significantly smaller than gold’s, meaning even modest capital inflows—like the 35 million ounces added to ETFs this year—can have an outsized impact on prices. That volatility may not suit large institutions, but it creates compelling upside for nimble small caps leveraged to rising silver prices.
Technical indicators are adding fuel to the fire. Silver recently broke past a key resistance level at $34.60, luring momentum traders and sparking speculative futures activity.
For small-cap miners, that kind of tailwind can translate to renewed attention and liquidity, especially for those with near-term development projects or exploration upside.
Industrial demand might be cooling in the short term, but the longer-term story is intact. From solar panels to AI-enabled electronics, structural demand drivers remain robust. With the market heading for a fifth consecutive deficit—this year’s demand is expected to top 1.2 billion ounces versus 1.1 billion in supply—tight fundamentals favor producers with high-grade assets and efficient operations.
UBS also points to opportunities in options markets, suggesting strategies like selling downside puts could enhance yield in a positive-trending environment. But for retail and institutional investors alike, the bigger opportunity may lie in small-cap equities that have yet to catch up to silver’s surge.
Source: https://www.proactiveinvestors.com/