Silver prices have experienced a significant slowdown in 2026, rising just 2.7% year-to-date following an impressive 170% rally in 2025. The current price of silver is around $73 per ounce, attributed to rising inflation, increased oil costs due to geopolitical tensions, and expectations of sustained high interest rates. The Zacks Mining – Silver industry, which encompasses companies involved in silver exploration and production, is facing pressure from escalating operating costs and reduced investor interest.
Despite the recent downturn, the industry enjoys strong underlying demand, particularly from industrial applications, which account for approximately 59% of total demand. Silver usage in renewable energy, especially solar power, is expected to surge as global renewable power capacity is projected to double by 2030. Key players like Pan American Silver and First Majestic Silver have maintained profitability and are considered potential beneficiaries of improved operational efficiencies and strategic project investments.
The Zacks Mining – Silver industry is currently ranked #198 out of 244 industries, reflecting lackluster near-term prospects. Over the past year, the industry has outperformed both the Basic Materials sector and the S&P 500, with a collective gain of 149.7% compared to 40.8% and 32.6%, respectively. Current industry valuation stands at a forward 12-month EV/EBITDA ratio of 6.87X, below the S&P 500’s 11.14X.
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