Top 3 Silver Picks to Watch as Bull Market Gains Steam

Silver has surpassed $37 per ounce, attracting investor attention due to supply constraints and its role as both a currency and commodity. The silver-gold ratio is historically high at 91, making silver attractive relative to gold. Investors can gain exposure through miners like Pan American Silver (PAAS), which is up 44.8% YTD after acquiring MAG Silver, and Endeavour Silver (EXK), expecting to double silver equivalent production; however, increased short interest suggests caution. The iShares Silver Trust (SLV) offers another avenue, mirroring the spot price of silver with a 28.4% increase YTD, though analysts suggest exploring other potentially stronger buys.

Analysis

Silver has breached a significant technical level, trading above $37 per ounce, with market technicians eyeing a potential path towards its all-time high near $50. This movement is underpinned by a compelling supply-demand dynamic, characterized by concerns over diminishing extractable silver and mining production that has not kept pace with demand. The current historically high silver-gold ratio of approximately 91 suggests silver may be relatively undervalued compared to gold, enhancing its attractiveness. Broader macroeconomic factors, such as a global population 2.5 billion larger and substantially higher government debt (exceeding $1 trillion now versus much lower levels then) compared to the last silver super spike in 1979, also support silver's dual role as a commodity and a quasi-currency. For investors seeking exposure, Pan American Silver Corp. (PAAS), the world’s fifth-largest producer, has seen its stock appreciate 44.8% year-to-date through June 17, supported by a maintained 2025 operational outlook and its $2.1 billion acquisition of MAG Silver Corporation. However, PAAS stock, up 28.9% in the last 30 days, has seen short interest rise by 18% last month, indicating some recent gains might be due to short covering, with analysts forecasting a 12-month average price target of $30.60 (5.21% upside). Endeavour Silver Corp. (EXK) is another mining option, with its stock up over 49% in the last month, anticipating a doubling of its silver equivalent production from the Terronera mine in 2025-2026 and potential margin expansion if its AISC remains under $10 per ounce. Similar to PAAS, EXK has experienced rising short interest, suggesting caution; analysts project a 36.89% upside with a $6.83 average target. Alternatively, the iShares Silver Trust (SLV) ETF, which tracks physical silver, is up 28.4% year-to-date, offering liquidity and a 0.5% expense ratio, though some analysts believe other investments may present better opportunities.

Key Decisions for Investors

• Given silver's technical breakout above $37/ounce and supportive fundamentals such as the historically high silver-gold ratio, investors could consider initiating or increasing exposure to silver, while remaining cognizant of the rapid price appreciation and potential for volatility.
• For equity exposure, Endeavour Silver (EXK), with a 'Buy' consensus and a significant production growth forecast offering a 36.89% potential upside, may present a more compelling opportunity than Pan American Silver (PAAS), which has a 'Hold' rating and a 5.21% upside forecast; however, investors should be wary of the recent sharp price increases and elevated short interest in both stocks, possibly indicating that much of the near-term gains from short covering have already occurred.
• While the iShares Silver Trust (SLV) provides direct and liquid exposure to silver prices, investors should weigh its 0.5% expense ratio and current 'Hold' rating from analysts, some of whom suggest exploring alternative investments or specific mining equities that might offer more leveraged returns on the silver thesis.