Why Silver and Silver Stocks’ Outlook Is So Bullish -Peter Krauth, Editor
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-Peter Krauth, Editor, Silver Stock Investor and Silver Advisor, Author;The Great Silver Bull
People often ask my why I am so bullish on silver.
Perhaps they are right to question that bullishness.
After all, silver is currently about 46% below its all-time high of $121 from last January. At first glance, that doesn’t look very bullish.
But that’s a matter of perspective, in my view.
As I write, silver is about 30% above the $50 ceiling it endured for 45 years, from 1980 until 2025.
Silver Price Action
Let’s look at price action at little more closely.
Last year something really big happened. Silver broke out above that ceiling. In fact, in October 2025 silver traded above $50 for the first time ever. Then, within just three months, it hit the astounding level of $121.
That was the peak (so far). At the time I said to expect at least a 40% correction. I also told my subscribers that it made sense to take some profits and expect lower prices after that speculative runup. That’s what I did.
Within days, silver corrected to about $65 intraday, then continued to consolidate, eventually reaching a low near $55 this past July.
The two takeaways from that price action are that $50 appears to be a new floor (the previous ceiling), and that silver miners are now cash machines at these prices levels. More on that later.
Deficits and Demand
We are in the 6th straight year of silver deficits. Demand remains robust, yet supply keeps falling short. Solar requires 150Moz per year. Forecasts for AI and data center demand are for 100Moz within 3 years, while EV demand could reach 100Moz within 5 years, with plenty of growth in sight for both sectors. These three sectors alone could represent 35% - 40% of all silver demand within 5 years.
According to The Silver Institute’s 2026 World Silver Survey, last year we had the largest overall deficit ever of 318Moz when investment in ETFs is included. The Institute expects demand for physical silver coins and bars this year will be the second highest level ever at 257Moz. That doesn’t sound to me like a market that is slowing down.
These entrenched fundamental drivers are why I am not concerned about short-term moves for silver.
Whether silver takes one year or two years to regain the $100 level (and likely head much higher) is not important. I expect ongoing sustained high silver prices will help boost silver explorers and miners for years to come.
Why Silver Miners Are the Sweet Spot
About 75% of all mined silver is produced as a byproduct of mining gold, copper, zinc and lead. The prices of all these metals are up significantly in the last few years.
When these metals are considered as byproduct credits in the production of silver, the overall net cost to produce the average ounce of silver last year was just $12.21.
At $70 silver, that means screaming profit margins in the range of 80%.
As the following chart shows, the top silver miners have never had so much cash on their balance sheets. Most analysts and investors have yet to factor in sustained high silver prices in their price to net asset value (P/NAV) calculations.
I expect that these record cash hoards will translate into a lot more exploration and expansion, but importantly also into mergers and acquisitions as the miners look grow and to replace the ounces they deplete.
I think we are entering the sweet spot in the cycle for silver stocks. Over the last two years silver was the place to be. Now I believe that silver miners and explorers will begin leveraging sustained high silver prices.
In my view there is a massive opportunity in front of us. A major silver stock bull market could kick off at any moment.
We can’t benefit unless we are already positioned.
But we also need to be smart about buying on weakness and taking some profits on big rallies.
I suspect there will be plenty more of both in the years ahead.
I hope you benefit handsomely from the coming silver bull market.