After a massive 170% rally in 2025, silver prices have lost momentum this year, declining 15.6% year to date. Prices recently touched a year-to-date low of $55 per ounce amid rising oil prices, a stronger U.S. dollar and higher interest rate expectations. This clouds the near-term outlook for the Zacks
industry. Although underlying demand remains resilient, inflation will drive up operating costs, squeezing margins.
We recommend considering companies such as First Majestic Silver
, Vizsla Silver
which will benefit from enhanced operational efficiency, disciplined cost management and solid projects.
About the Industry
The Zacks Mining - Silver industry comprises companies that are engaged in the exploration, development and production of silver. These include big and small players operating mines of widely varying types and scales. Silver-bearing ores are mined by open-pit or underground methods and then crushed and ground. Miners continually look for opportunities to expand their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets, internally and through acquisitions. Only 20% of silver comes from mining activities, wherein silver is the primary revenue source. The balance comes from projects wherein silver is a by-product of mining other metals, such as copper, lead and zinc. Thus, several companies in the silver mining industry are engaged in mining other metals.
What's Shaping the Future of the Mining-Silver Industry
Silver Prices Pull Back After Record Rally: Silver surged 170% in 2025, even outpacing gold’s 66.5% gain, driven by elevated geopolitical risks, economic uncertainty, resilient demand and tightening inventories. Also, 2025 marked a sharp reversal in ETF trends, with strong inflows after consecutive years of outflows, one of the key catalysts behind silver’s breakout. The bullish outlook was further strengthened after the U.S. Geological Survey added silver to its 2025 List of Critical Minerals, a move expected to support domestic production through favorable policies and faster permitting. The rally extended into early 2026, with silver hitting a record high of $121.64 per ounce in late January. However, prices later retreated, touching a year-to-date low of $55 per ounce on July 17 amid rising oil prices, a stronger U.S. dollar and higher interest rate expectations fueled by escalating Middle East tensions. Silver has since rebounded to around $59.5 per ounce on renewed safe-haven demand and technical buying ahead of next week's Federal Reserve meeting. Despite the recovery, silver remains down 15.6% year to date, though it is still approximately 126% higher than its year-ago level.
Inflationary Costs to Hurt Margins: Industry players are facing escalating production costs, including electricity, wages, water and materials. Mining companies are major consumers of energy, with around 50% of their production costs closely linked to energy prices. Surging oil prices, spurred by the Iranian conflict, remain a headwind. A shortage of skilled workforce spiked wages. With no control over silver prices, the industry must focus on improving its sales volumes while being cost-effective. Players are investing heavily in R&D and resorting to technological innovations required at almost every level of operation to increase efficiency, sustain growth and rein in costs.
Strong Demand Underpins the Industry: Industrial applications account for roughly 59% of the total demand, with the solar energy industry being one of the main drivers. Silver use in photovoltaic (PV) technology has climbed sharply in recent years due to the increasing global adoption of solar technology, advances in solar cell design and the global push for renewable energy. Per the International Energy Agency (IEA), global renewable power capacity is expected to double between 2025 and 2030. Solar PV will account for 80% of the increase, given its low costs, faster permitting and rising social acceptance. Silver has been used by the automotive industry for many years, and there has been a steady increase in the use of electrical and electronic components driven by demand for enhanced safety features and improved functionality. The electrification of the automotive industry has boosted demand further. Battery electric vehicles use significantly more silver than hybrids or internal combustion engine vehicles, while the growing number of electronic control units further boosts consumption. Rapid digitalization and the rise of AI are emerging as powerful new demand drivers for silver. As economies transition toward clean energy, electrification and AI-led digital infrastructure, silver is increasingly cementing its role as a critical “next-generation metal.”
Zacks Industry Rank Indicates Lackluster Prospects
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates gloomy prospects in the near term. The Zacks Mining – Silver industry, a 10-stock group within the broader Zacks Basic Materials sector, currently carries a Zacks Industry Rank #189, which places it in the bottom 23% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Despite the bleak near-term prospects, we will present a few Mining-Silver stocks that you can add to your portfolio, given their prospects. But it is worth looking at the industry’s shareholder returns and current valuation first.
Industry Versus Broader Market
The Mining-Silver Industry has outperformed the sector and the Zacks S&P 500 composite over the past year. The stocks in this industry have collectively gained 71% in the past year compared with the Basic Material sector’s 17.9% rise. Meanwhile, the Zacks S&P 500 composite has risen 20.9%.
One-Year Price Performance
Industry's Current Valuation
Based on the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing silver-mining companies, we see that the industry is currently trading at 9.15X compared with the S&P 500's 18.54X and the Basic Material sector's trailing 12-month EV/EBITDA of 12.81X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
In the past five years, the industry has traded as high as 21.50X and as low as 7.98X, with the median being 14.32X.
2 Mining-Silver Stocks to Keep an Eye On
First Majestic Silver: The company recently reported that it has produced 3.8 million silver ounces in the second quarter, a year-over-year increase of 3%, primarily driven by strong performances at La Encantada and Santa Elena. Gold production rose 2% to 34,660 ounces, driven by strong production at Santa Elena. With strong production results so far in 2026 and the company’s successful progress on throughput expansions across all mine sites as well as continued operating efficiencies, the 2026 attributable consolidated production guidance has increased to 14.6 – 15.5 million silver ounces, a 10% increase from the original guidance of 13.0 – 14.4 million, as well as a 7% increase to 128,000 – 135,000 gold ounces compared with the original guidance of 116,000-129,000 gold ounces. Management has increased the 2026 capital budget to a range of $318-$344 million to support key growth initiatives, including the Jerritt Canyon restart program, development projects at Santa Elena including Navidad and the early advancement of underground access to Santo Niño for near-term mining, further development across San Dimas, Los Gatos and La Encantada, and the acquisition of additional equipment to enhance and sustain higher throughput rates at Los Gatos.
The Zacks Consensus Estimate for First Majestic’s 2026 earnings has moved up 11% in the past 90 days. The estimate indicates year-over-year growth of 73.9%. First Majestic currently carries a Zacks Rank #2 (Buy).
Price & Consensus: AG
Vizsla Silver: The company is advancing its flagship, 100%-owned Panuco silver-gold project in Sinaloa, Mexico, which is one of the highest-grade silver primary discoveries in the world. It is targeting the first silver production in the second half of 2027. The company completed the Feasibility Study for Panuco in November 2025, which highlighted 17.4 million ounces of silver equivalent of annual production over an initial 9.4-year mine life. Vizsla Silver aims to position itself as a leading silver company by implementing a dual-track development approach at Panuco, advancing mine development while continuing district-scale exploration through low-cost means. Last year, the company acquired the Santa Fe Project, including both production and exploration concessions. With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million silver-equivalent ounces of initial annual production envisioned for Panuco Project #1.
The Zacks Consensus Estimate for this Vancouver, Canada-based player’s 2026 bottom line is currently pegged at a loss of two cents per share. The estimate has moved up from the loss of four cents per share projected 90 days ago. VZLA currently carries a Zacks Rank of 2.
Price & Consensus: VZLA
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