The global macro uncertainty, tariff wars, and geopolitical tensions have attracted the attention of investors to safe-haven investments of gold and silver. History has shown that gold and silver stocks witnessed cyclical jumps for three, five, or 10 years, depending on the state of economic growth and consumer confidence. The 1970s inflation and stagflation, the 2008 global financial crisis all saw a sharp surge, and when economic conditions stabilized, they also witnessed a sharp fall.
A surge in both silver and gold prices
Silver prices have increased from a low of $25 in 2022 to $58.45 on September 12, 2025. Gold prices rallied from below $2,500 in 2022 to over $5,000 in September 2025.
Behind this sustained rally is a supply deficit for silver, which is used in solar panels, electronics, batteries, and military equipment. Also, the precious metal status of silver makes the case for investment and inflation hedging, driving its price. In the case of gold, central banks worldwide have been on a buying spree to fill their gold reserves, especially amidst trade tensions.
Has the cyclical uptrend matured, or is there more upside to gold and silver prices? The answer to this can be found in macro data.
Canada’s unemployment rate in August 2025 reached 7.1%, its highest since May 2016, after excluding the pandemic years of 2020 and 2021. Its real gross domestic product (GDP) declined 0.1% in June. This data is influenced by the tariff shocks of February and April, but hints at concerns. Even now, many businesses are refraining from making significant investments.
With nations worldwide altering trade strategies and Europe on the verge of a recession, gold and silver stocks present an attractive investment opportunity for capital appreciation and performance-based dividends.
Top gold stock to buy in Canada
Most gold and silver mining stocks are trading near their peak. However, here are the top gold and silver mining stocks you can consider buying in a market correction.
Mining companies plan their production schedule depending on metal prices. They also strive to reduce all-in sustaining costs (AISC) to benefit from the cost and price gap. The trick to selecting the right stock is to look for the one that has low debt and AISC.
Lundin Gold (TSX:LUG) used the opportunity of rising gold prices to increase gold production and pay off its long-term debt. As of June 2025, it has zero debt. Its AISC increased by 6% year over year to $927 per ounce, while the average realized gold price increased 41% to $3,361 per ounce. The windfall gains from the widening cost-price gap turned the negative free cash flow (FCF) positive. As per its dividend policy, ot passed on the increase in net cash position to shareholders. It declared a dividend of $0.79 per share, which includes a base dividend of $0.30 and a variable dividend of $0.49.
The stock has corrected slightly by 6% after reaching an all-time high of $97.67 on robust earnings figures. You could consider buying this stock after a further correction. A dip could come on September 17 if the U.S. and Canadian central banks cut interest rates.
Top silver stock to buy in Canada
Pan American Silver (TSX:PAAS) is a perfect silver mining stock to get exposure to silver prices. It has the benefit of a net cash position of $288.5 million as of June 30, 2025.
In the second quarter, its silver AISC increased 9% to $19.69, while its realized silver price increased 17% to $32.91. This resulted in a record free cash flow of $233 million and a performance dividend of $0.025 over and above its $0.10 base dividend.
PAAS’s biggest strength is the acquisition of MAG Silver, which has a large-scale, high-grade, low-cost silver mine, Juanicipio, in Mexico. This mine is expected to increase PAAS’s silver production by roughly 35% on an annualized basis and significantly reduce AISC.
MAG’s acquisition will add around $98 million in free cash flow in 2025. PAAS expects this free cash flow to grow by 23% over the next three years. Wait for the stock price to correct before buying it.
