Silver Futures Surge Boosts Pan American Silver Corp
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy PAAS?
Source: 6-K
Pan American Silver Corp (PAAS) saw its shares rise by 5.42% as it crossed above the 20-day SMA, reflecting a positive shift in market sentiment towards silver.
The surge in silver futures, which jumped 12.8% to $86.8 per ounce, indicates strong demand for silver, particularly after recent price corrections. This rebound is attracting investors back into the market, highlighting optimism for silver mining stocks, including Pan American Silver.
The current market dynamics suggest that Pan American Silver is well-positioned to benefit from the renewed interest in silver, as investors reassess their asset allocations in light of the recent price movements.
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Analyst Views on PAAS
Wall Street analysts forecast PAAS stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 54.590
Low
43.19
Averages
49.70
High
55.00
Current: 54.590
Low
43.19
Averages
49.70
High
55.00
About PAAS
Pan American Silver Corp. is a producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. It owns a 100% interest in the Escobal mine in Guatemala, and it holds interests in exploration and development projects. Its segments include Silver, Gold and Other. Silver segment includes operations of La Colorada, Huaron, San Vicente, Cerro Moro, La Colorada Skarn, Navidad and Escobal. Gold segment includes operations in Dolores, Shahuindo, Timmins, Jacobina, El Penon and Minera Florida. La Colorada mine produces silver-rich lead and zinc concentrates from a flotation plant treating sulfide ore. Huaron mine produces silver-rich zinc, lead and copper concentrates using floatation technology. It owns 44% joint venture interest in the Juanicipio silver mine in Zacatecas, Mexico, operated by Fresnillo plc, along with 100% ownership of the Larder exploration project and a 100% earn-in interest in the Deer Trail exploration project.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Gold Price Recovery: Spot gold prices increased by 1.8% to $5,113.6 per ounce, surpassing the $5,000 mark, indicating strong investor demand for gold, particularly as the Chinese New Year approaches.
- Weak Dollar Impact: The DXY index dipped 0.2% to 96.3, with the weaker dollar providing support for gold and silver prices, further enhancing the investment appeal of precious metals in the market.
- Mining Stocks Performance: Silver mining companies First Majestic and Hecla Mining gained over 4% in pre-market trading, reflecting optimistic sentiment in the precious metals sector and investors' expectations for future price increases.
See More
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- Zhongcai Futures Profitability: According to the Financial Times, Zhongcai Futures earned over $500 million during the silver rout, demonstrating its successful establishment of large short positions amidst market volatility, thereby solidifying its position in the industry.
- Market Sentiment Shift: Despite declines in silver mining stocks like First Majestic and Hecla Mining by over 2%, retail sentiment for iShares Silver Trust and SPDR Gold Shares ETF remains in the 'extremely bullish' territory, indicating strong investor confidence in future market performance.
See More
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- Silver Futures Surge: March 2026 silver futures jumped 12.8% to $86.8 per ounce, reflecting a reassessment of prices by investors, with potential for silver to reach $300 by summer 2026.
- Market Sentiment Reset: Analyst Peter Fertig noted that the market was oversold following Trump's nomination of a new Fed chair, and the current rebound is attracting profit-taking investors back into the market, highlighting strong demand for precious metals.
- Mining Stocks Rise: The rebound in precious metal prices lifted shares of silver miners like First Majestic and Hecla Mining by around 5%, while gold miners Newmont and Barrick Gold saw increases of 4% and 5%, respectively, indicating optimistic sentiment towards mining stocks.
See More
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- Return and Risk Assessment: As of January 30, 2026, SIL's one-year return stands at 167.4%, compared to IAU's 72.9%, suggesting higher potential returns for SIL, but its maximum drawdown of -55.63% highlights greater risk, necessitating careful consideration of risk versus reward by investors.
- Portfolio Composition: SIL exclusively invests in silver mining companies, holding 41 firms including Wheaton Precious Metals and Pan American Silver, which makes its performance susceptible to individual company factors, whereas IAU directly tracks gold prices, offering more stable investment returns.
- Market Liquidity and Investment Strategy: IAU boasts $79.7 billion in assets under management, representing a highly liquid way to invest in gold, while SIL's $6.3 billion in assets indicates lower liquidity, prompting investors to consider their investment goals and risk tolerance when making choices.
See More
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- Revenue Structure Analysis: In Q3 2025, silver accounted for 48% of Hecla's total revenue, with gold at 37%, and lead and zinc making up the remainder, indicating the company's heavy reliance on precious metals, where future price fluctuations will directly affect its financial health.
- Stable Dividend Policy: Despite improved financial results, Hecla's annual dividend remains at $0.015 per share, as management prioritizes debt repayment and reinvestment in the business, a capital allocation decision that may impact investor return expectations.
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See More
