Silver has once again stepped into the spotlight as a compelling metal in the global commodities market.
The precious metal sits at the intersection of two powerful forces. One of them being its role as a traditional store of value and the other being its growing importance as an industrial metal underpinning the global energy transition.
As geopolitical uncertainty persists and demand for clean energy technologies accelerates, both drivers have helped push silver higher.
This convergence of investment and demand has helped propel the metal higher throughout the first month of the year, with silver briefly touching US$119 an ounce in January 2026 amid continued weakness in the US dollar and heightened economic and geopolitical uncertainty.
At the time of writing, silver’s price sat at US$72 an ounce, as investors focused on US President Trump’s threat to target Iranian civilian infrastructure unless his demands are met, heightening concerns about the economic impact of prolonged conflict.
Over the past month, silver’s price has fallen 16.9%, yet is still up 144.34% compared to the same time last year, as reported by Trading Economics.
Speaking to Mining.com.au, Tinka Resources (TSX-V:TK) CEO Graham Carman says although prices came under pressure in March due to the oil crisis in the Middle East, silver’s sentiment remains positive.
“Silver prices remain very strong compared to historical levels, supported by investment demand and industrial consumption,” Carman says.
“Silver continues to benefit from its dual role as a precious and industrial metal with increasing demand tied to solar energy, electronics, and broader electrification trends.”
Investment demand is a key driver of silver’s momentum this quarter. According to Endeavour Silver (NYSE:EK), physical investment demand for silver is on track to jump 20% in 2026, with bar and coin purchases climbing to 227 million ounces as Western buyers re-enter the market alongside sustained Indian appetite.
Global exchange-traded products (ETP) holdings reached an estimated 1.31 billion ounces, while lease rates in London climbed to all-time highs as physical tightness intensified.
Yet silver’s strength cannot be attributed to investor demand alone. Industrial consumption also plays a key role in silver’s market, accounting for roughly 60% of total demand, excluding ETF flows, as reported by JP Morgan.
Silver’s industrial demand remained anchored near 650 million ounces, with pullbacks in solar panel consumption partially offset by surging requirements from artificial intelligence (AI) data centres and the automotive sector, as Endeavour Silver reports.
What’s to come
The Silver Institute reports that the underlying drivers that supported silver throughout much of 2025 have remained firmly in place so far in 2026. These include tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty and concerns over the Federal Reserve’s independence.
Looking ahead, JP Morgan Global Research forecasts silver to average US$81 an ounce in 2026, following an eventful 2025 which saw the precious metal’s price increase 130%.
However, the rapid price rise could eventually create new challenges for industrial users.
Head of Base and Precious Metals Strategy Gregory Shearer notes that sustained high prices could accelerate substitution and efficiency efforts in the solar sector.
“Long term, the largest risk we see for silver comes from more widespread adoption of silver-free technology, such as the cadmium telluride thin-film technology,” Shearer says.
“While a precious metal at its core, silver is still a very industrial metal, with industrial applications accounting for about 60% of total demand (excluding ETF flows).
“From a fundamental perspective, we believe the surge higher in silver has likely already set in motion a meaningful acceleration in substitution and thrifting trends, which will leave scar tissue on silver balances over the coming quarters.”
Scaling supply
As consumption continues to expand, producers and developers are moving to ensure the market can keep pace.
The Silver Institute reports that the global silver supply is expected to increase by 1.5% in 2026, reaching a decade high of 1.05 billion ounces. Silver mine production alone is expected to increase by 1% to 820 million ounces in 2026, driven by stronger output from existing operations and recently commissioned projects.
Across major mining jurisdictions, growth is emerging from primary silver operations and polymetallic mines where the metal is produced as a by-product.
In Mexico, the most growth will come from primary silver mines, while in China, a higher output is expected from China Gold International’s (TSX:CGG) Jiama Polymetallic Mine as their plant expansion continues.
Gains in Canada are expected from freshly commissioned projects and existing primary gold and silver operations, most notably Hecla Mining’s (NYSE:HL) Keno Hill and New Gold’s (NYSE:NGD) New Afton Project.
Elsewhere, Morocco is poised for a rise in production that will be underpinned by Aya Gold and Silver’s (TSX:AYA) Zgounder Mine as the ramp-up phase is completed.
Producers and developers are working to scale existing operations and advance projects through feasibility and construction, aiming to bring additional ounces to market.
For instance, Manuka Resources (ASX:MKR) announced it is aiming to produce silver and gold from the Wonawinta production facility in New South Wales this year, following the appointment of Rod Griffith as Executive General Manager of Operations.
As previously reported, Wonawinta is expected to begin production in Q2 2026.
Griffith will be responsible for overseeing the Mt Boppy Gold Project, also in the Cobar Basin and Wonawinta during the plant upgrade and restart of silver production.
Fueling the future
While producers work to scale output, explorers are securing the pipeline of projects necessary to deliver that output. As global consumption rises, particularly from the renewable energy and electronics sector, new discoveries will be essential to sustaining long-term supply.
Carman explains that elevated silver prices will “definitely” drive further exploration, particularly for Tinka’s silver projects such as the Ayawilca and Colquipucro projects in Peru.
“At Colquipucro, the silver mineralisation lies very close to surface and is potentially open pittable,” he says.
“This deposit could be a starter project for a future mining venture at Ayawilca, a scenario we are currently reassessing.”
Exploration programs across the Americas, Australia, and other emerging jurisdictions are playing an increasingly important role in uncovering the next generation of silver assets.
For Tinka Resources, a major drilling program is set to take place between Q3-Q4 at the Ayawilca Project.
The drilling program will target some of the highest potential silver veins which lie outside of the current resource. The program will also expand the massive sulphide zinc-silver mineralisation already defined.
Tinka is also awaiting results from a recent surface sampling program of outcropping silver veins at West Ayawilca, which Carman says has potential to extend the silver zone to the north.
“These results will be released to the market Q2 2026,” the CEO says.
Ayawilca hosts 30 million ounces of silver in polymetallic sulphide resources, along with zinc and lead. Meanwhile, Colquipucro hosts 27 million ounces of silver in oxide resources.
“We have almost 60 million ounces of silver in combined resources at the project,” Carman says.
“Plus, we are currently reviewing Colquipucro which was last assessed in 2016 using US$24 per ounce silver, which will likely lead to a revitalisation of this project.”
In Canada, Silver North Resources (TSX-V:SNAG) is planning an exploration program to further define the potential of the Main Fault and other targets at the Haldane Project in Yukon, Canada.
The program will focus on interrogating the complete Main Fault dataset to uncover mineralisation controls in preparation for the 2026 program.
An airborne geophysical survey will also be conducted in late Q1 or early Q2 2026. The timing allows for interpretation of the airborne data to further inform targeting, with drilling to begin as soon as conditions onsite allow.
In early March, Silver North locked in a two-year drill contract with Boart Longyear for a fully funded 2026-2027 exploration program at Haldane.
The contract involves two diamond drill rigs provided for the entirety of the 2026 and 2027 field seasons. Mobilisation of the two drills and supporting equipment will occur around mid-March, with the equipment ready and in position to start the drilling campaign as soon as weather and the exploration season allow.
This news comes after Silver North completed a C$11.58 million private placement. The company first announced its intention to raise up to C$5 million last week, as reported by Mining.com.au. The initial conditions saw Silver North issuing 5 million units at a price of C$0.40 per unit.
Over in Argentina, Unico Silver (ASX:USL) is conducting ongoing drilling across its assets, following identifying shallow oxide mineralisation at the Breccia Puntundo prospect within the Joaquin Project.
As previously reported, assays from Breccia Puntudo returned intercepts including 28m @ 284 grams per tonne silver equivalent from 61m, including 13m @ 513g/t silver equivalent from 67m; 20m @ 277g/t silver equivalent from 57m; and 6m @ 992g/t silver equivalent from 56m, including 3.2m @ 1,800g/t silver equivalent from 58.1m.
The company has two rigs currently operating, targeting resource expansion and new discoveries along the corridor. The prospect hosts a mineralised trend that extends over 3km of strike and has experienced limited drilling.
Unico Silver owns two development-ready silver assets in Argentina’s Santa Cruz province, a mining-friendly region hosting major operations by Newmont (ASX:NEM), AngloGold (NYSE:AU), and Pan American Silver (NYSE:PAAS).
The company is executing a two-phased strategy – PLUS150 AND BEYOND300 – to transition from an explorer to a developer focusing on free-milling silver resources.
Carman notes that there is an opportunity for explorers and developers alike to get more exposure in the current silver market.
“We expect that the silver market will continue to remain attractive for investors for the foreseeable future,” he says.
Together, the forces shaping the silver market put the metal in a unique position to simultaneously serve as a financial safe haven, alongside gold, as well as be a cornerstone of the modern industry.
Producers are expanding operations, developers are advancing new projects and explorers continue to drill deep in search of the next discovery.
Write to Aaliyah Rogan at Mining.com.au
Images: Mining.com.au, Tinka Resources & Unsplash
