The great silver rally has seemingly hit a roadbump in these past few weeks. Now down just over 10% from recent highs, the precious metal that surprised investors might have what it takes to continue on as market volatility and other macro pressures persist into the start of the new year. Undoubtedly, it’s not just silver that’s been feeling a bit of pain lately.
The price of gold has been walloped after enjoying an incredible multi-year surge. And while some pundits still expect great things for gold and silver in 2026, I would look to be a net buyer of both metals, especially given the different traits they bring to the table. Though gold may be more appealing for investors looking to hedge their portfolios and lower their overall beta, silver still stands out as a great industrial metal as several secular trends continue to keep demand robust over the long haul.
Of course, silver is more of a risk-on asset to own than gold. But if you’re fine with the economic sensitivity and you view demand trends as continuing to work in favour of the price of silver, picking up a few silver coins or, even better, buying shares of miners that produce considerable amounts of silver, could be a good idea before the year comes to a close. As always, don’t strive to get the timing right when it comes to buying the dips in assets, whether it be physical silver or a silver miner.
Silver might have more shimmer than gold in 2026. Don’t sleep on the metal!
Instead, focus on the long-term trajectory and don’t think too much about any near-term depreciation if you do commit to buying shares with the long game at the top of mind. The good news is that silver prices have already corrected, and even if there’s more pain in the cards, at least you can tell yourself you didn’t buy at the top. Even if you did, you should be feeling good about buying more ounces (or mining shares) at even lower prices!
Though silver price predictions vary across the board, there are some notable bulls who think prices could surge well above US$60 per ounce. In fact, one big bank sees silver rising as high as US$65 per ounce in 2026. That entails a considerable year-ahead gain of nearly 36%. Undoubtedly, a bet on silver won’t come with the same hedging benefits as gold, but if you still see silver as a relative value over gold, I’d not be against taking advantage of the correction ahead of a potential 2026 silver surge.
Notably, silver’s use in electronic components and other equipment (think solar panels) makes it a very intriguing asset to own. Combined with falling interest rates, I think the stage might be set for more gains in silver after a temporary setback.
First Majestic looks like a shining buy!
For those looking to make the most of a silver rally, perhaps a miner with significant operating leverage, like First Majestic Silver (TSX:AG), might be worth buying up. It’s a solid producer that’s off 26% from its recent highs. With low costs of production and the ability to expand over the coming quarters, I see First Majestic as one of the miners that’s been unfairly punished.
With impressive mines and a modest multiple, shares look like a prime dip-buy that could gain the most if, in fact, US$65 silver is in the cards for next year. As silver surges further, I think it’s time to start thinking of silver, not as a nice byproduct or bonus as miners prioritize other metals (like gold), but more as a main attraction kind of asset. As one of the few well-run miners that prioritize silver, I’d look to initiate a position while silver prices are still relatively depressed.
