To The Moon

🌟🌟🌟Silver surged back to over USD 83/oz as of February 10, recovering from a brutal 35% flash crash in late January.  This latest jump is primarily driven by a weaker US Dollar, which fell to 4 year lows, making silver cheaper for international buyers.

Key Reasons for Silver Recent Rebound 

Dollar Weakness and Fed Uncertainty :  Markets are pricing in potential interest rate cuts for later in 2026.  Growing concerns of the Fed's independence and the recent nomination of Kevin Warsh as the next Fed Chair have created volatility, leading investors to seek hard assets like Gold and Silver.

Central Banks' Gold Buying Spree:   Central banks around the world especially China, have continued their gold buying spree.  This has created a spillover effect that drives silver even faster than gold.

Physical Supply Crunch : A 5th consecutive year of structural deficits means silver is being consumed by AI data centers, solar and EVs, faster than it can be mined.

Geopolitical Shocks : Recent US military operations in Venezuela and escalating tensions with Iran have triggered safe haven inflows into precious metals.

Will Silver Hit USD 100 again?

Many analysts including those at Citigroup, believe the current move is a long overdue pricing. 

The case for USD 100+: Citi recently predicted that Silver could reach USD 150 within 3 months, calling it "Gold on Steroids". 

The Risk :  The silver market remains famously volatile.  High margin requirements on major exchanges and exuberant speculation could still trigger sharp, sudden corrections if the US Dollar suddenly rebounds.

If you missed the initial surge, you are likely staring at  $iShares MSCI Global Silver and Metals Miners ETF(SLVP)$ wondering if there is still time to get in or are you buying the top?

The Engine Under the Hood: SLVP snapshot

Investing in SLVP isn't just buying silver.  It is buying the machinery that pulls it from the earth.  When Silver prices rise, silver miners often see exponential profit growth. 

SLVP is currently a "Buy on dips" for most analysts.  While it has delivered massive returns, soaring almost 25% year todate and 203% in 2025, it is experiencing historic volatility.

SLVP provides leveraged exposure to Silver by holding mining companies rather than the physical metal itself.  This makes it more volatile than physical Silver ETFs like $iShares Silver Trust(SLV)$ .

SLV also pays a dividend yield of 1.5% every 6 months compared to holding SLV which does not pay any dividends at all.

The expense ratio is 0.39%.

SLVP Top 10 Holdings 

$Hecla Mining(HL)$ is the oldest North America precious metals miner, known for its high grade Greens Creek mine in Alaska.  It is a pure play favourite for those wanting stable domestic production.

Industrias Penoles is a Mexican powerhouse and one of the world's largest refined silver producers.  It owns a majority stake in Fresnillo, giving it a massive indirect exposure to the richest silver veins on the planet.

Fresnillo is the undisputed king of primary silver production.  Based in Mexico, Fresnillo operates the world's largest silver mine and is often the first mover when industrial silver demand spikes. 

First Majestic Silver $First Majestic Silver(AG)$ is known as the purest silver play.  It gets a higher percentage of revenue from silver than almost any peer at 57 to 60%.  They even operate their own mint, selling silver coins directly to investors.

Discovery Silver is a high growth developer focused on the Cordero project in Mexico.  This is one of the largest undeveloped silver resources in the world.

Endeavour Silver is a mid tier producer that has been aggressively expanding its footprint in Mexico. 

Wheaton Precious Metals is the "Banker" of the group.  Wheaton does not operate mines but they provide upfront capital to miners in exchange for the right to buy silver at a fixed low cost.  It is a high margin, lower risk way to play the sector.

Newmont  $Newmont Mining(NEM)$  is primarily a gold giant but has become a massive silver player through its acquisition of Goldcorp, specifically the Penasquito mine, which is a monster producer of silver by products.

Silvercorp Metals is a lean profitable producer with major operations in China.  They are known for having some of the lowest cash costs in the industry, making them a cash flow machine when silver prices are high. 

Agnico Eagle Mines is another gold miner that makes the list due to its significant silver by product credits.  Agnico provides a safety net of high quality diversified assets within the volatile SLVP basket.

The Verdict 

At USD 83 silver/oz, the above silver mining companies are not just surviving, they are printing money.  If Silver breaks the psychological USD 100 barrier, these miners could see their valuations jump as institutional investors scramble for exposure.

Concluding Thoughts 

I have already invested in SLV  ETF which is up 161% because I bought it last year when it was under USD 30.  I have just added SLVP as a tactical bet that the price of Silver will hit USD 100 soon.   SLV is my bedrock while SLVP is my turbocharger. 

So I wait, not with fear but with that quiet electric certainty because Silver is like a coiled spring, waiting to bounce.    When it does, Silver will reward those who have the patience to wait.

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