Silver prices soar, mining stocks lag, investment opportunities and risks coexist 250925

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The price of silver continued to rise in 2025, climbing from $24 at the beginning of the year to nearly $37. This surge has attracted widespread market attention. Despite the rise in silver prices, the stock prices of many silver mining companies still lag behind the metal prices. This gap between value and price may contain investment opportunities or risks. Keith Neumeyer, President and CEO of First Majestic Silver, pointed out that the fundamentals of silver supply and demand are currently very strong, and the market has been in a supply deficit for five consecutive years. Large investors are beginning to pay attention to the silver market and have shown more interest in how to position themselves in it. However, the stock prices of silver mining companies have not fully reflected the rise in silver prices, possibly due to investors' skepticism about the operational capabilities of mining companies or the market's lack of enthusiasm for mining investments compared to other industries.

In terms of costs, although oil prices have fallen, mining companies still face challenges from rising labor and material costs. Neumeyer noted that while the company's current financial condition is sound, the complexity of the mining industry and inflationary pressures remain. In the long run, the demand for silver will continue to grow, especially in electrification and technological applications. Neumeyer believes that silver prices need to reach higher levels to stimulate new investments and production expansion.

In terms of geopolitics, Neumeyer is optimistic about the investment environment in Mexico, believing that the local government's attitude toward foreign investment is improving. As for future mergers and acquisitions, Neumeyer stated that First Majestic Silver is looking for potential assets but will not easily purchase unlicensed assets due to the high risks involved.

Source: "XQ Global Winner" Terminal