Silver Finally Breaks Free
After a decade trapped below resistance, silver has finally broken out, and momentum is building fast.
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Quote of the week
“I think you can look for probably another 20% move next year... silver was in such a lull for so long, and now it’s finally starting to move and you’re seeing some pretty solid action, so I would certainly see and expect this to run, and that’s another metal I would continue to buy.”
Our take: Silver’s been coiled like a spring for years, and it’s finally had its big breakout. A 20% move from here isn’t just possible, it’s probable. Industrial demand from solar and electronics is surging while supply remains constrained. Unlike gold, which moves on monetary fear, silver tends to fly when both monetary chaos and industrial demand align. We are entering that time now. The play: accumulate silver on dips. The demand case at current levels favours positioning in both physical and quality miners.
Chart Of The Week
Silver surged sharply this week, hitting all-time highs just shy of $54.50 before retreating to just under $52 per ounce, still marking an impressive weekly gain of around +3%. This strong rally is driven by a global physical supply shortage and surging industrial demand, especially from the solar and electronics sectors, which require silver’s unique conductivity. A historic short squeeze in London and New York markets further pushed prices higher, as lease rates to borrow silver jumped above 30%, which forced traders to cover positions with costly buy-backs.
Additionally, buying in India ramped up with purchasing ahead of Diwali and wedding seasons amid a weaker rupee. Pushing premiums above international rates and tightening supply further. Macroeconomic factors like US Federal Reserve rate-cut expectations, a weakening US dollar, ongoing inflation concerns, and geopolitical tensions also fueled investor demand for silver as a safe-haven asset. These combined micro and macro dynamics created intense momentum, making October 2025 one of silver’s strongest rally periods since 2011.
Gain of The Week
Silver’s breakout is separating the operators from the pretenders, and First Majestic Silver Corp. is proving it belongs in the former category. Up +6% for the week after briefly spiking over +18% before silver’s pullback, the stock is capitalizing on both rising metal prices and operational execution.
The catalyst: On October 8th, First Majestic reported record quarterly silver production of 3.9 million ounces in Q3 2025, a staggering +96% increase year-over-year. Total silver equivalent production hit 7.7 million ounces, up +39% from Q3 2024, driven largely by the integration of the Los Gatos mine and a +27% production surge at San Dimas.
Here’s what matters: First Majestic is hitting production records just as silver enters what could be a multi-year bull run. The company is tracking at or above guidance, drilling aggressively to expand resources, and is positioned to ride higher silver prices.
Bottom line: With record silver output, aggressive exploration, and silver’s technical setup pointing higher, First Majestic is executing at exactly the right time. This is the kind of operational momentum that compounds when metal prices are in sync.
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Disclaimer: This content is for educational purposes only and is not financial advice. Do your own research and consider speaking with a licensed professional.