Silver stocks have been flying under the radar. Few people own them. Few analysts cover them. And most of Wall Street still hasn’t caught on to what might be the next big move in the metals space.
But that’s changing fast…
Money is quietly flowing into silver. And not just into the metal itself.
Actually, the biggest percentage inflows this year are happening in the junior mining sector, and most investors don’t even realize it.
Just look at the numbers…
Just the Facts
Over the past year, flows into the Global X Silver Miners ETF (SIL) are up about 27% year-to-date, outperforming the metal by roughly 15%.
Meanwhile, the ETF that tracks junior silver miners, SILJ, has attracted more than $220 million in inflows over the last 12 months. And for a fund that was sitting around $1 billion in total assets not long ago, that’s a meaningful increase.
The iShares Silver Trust (SLV), the largest silver ETF in the world, still dominates the landscape with roughly $14 billion in assets.
But it’s a broad play on silver as a commodity, not the companies that dig it out of the ground.
And while SLV gets all the attention on financial news channels, the real leverage is in the companies with small market caps and big upside.
That’s where junior silver miners come in…
These tiny companies are rarely followed by big institutions. And analyst coverage is minimal at best.
In fact, as of this writing, fewer than 5% of junior silver miners in the SILJ ETF have consistent analyst coverage from the major banks or brokerages.
Most are covered only by small-cap research firms or newsletter writers.
That’s not a bad thing, though…
It means opportunity.
You see, when a junior miner hits a discovery or releases strong drill results, there’s little competition to act on the news.
No algorithmic trading desks.
No Wall Street research desks issuing upgrades.
Just you and the chart.
And the charts look good…
SILJ has been forming a solid base over the past year. In technical terms, it’s showing a classic cup-and-handle formation.
That’s often the setup for a major breakout. In fact, the last time we saw this same pattern back in 2016, SILJ more than tripled within a few months.
A chart showing silver’s ascent in 2016 after breaking out of a cup-and-handle pattern. Source: Stockcharts.com and J. Enomoto
That happened because silver broke out. And history might be repeating itself.
Breaking Resistance
Silver prices recently broke above $30 per ounce, the highest level in over a decade.
That move was fueled by both investor demand and strong industrial use cases, especially solar panels, electric vehicles, and advanced electronics.
The gold-to-silver ratio also tells an interesting story.
That ratio is currently hovering around 91, well above the long-term average of around 65.
This suggests silver is undervalued compared to gold and still has room to run.
To be fair, if the ratio simply reverts to its historical average, silver could see a massive price spike.
And when silver spikes, junior miners usually rocket higher.
That’s because junior miners offer leveraged exposure to the metal…
A small move in silver prices can translate into a huge move in earnings potential for these companies.
Just to give an example…
If silver rises from $30 to $35, that’s a 16% move in the metal. Not too shabby.
But for a company with narrow margins or one that’s just reaching profitability, that move could double or even triple its earnings power.
It’s not just about earnings, though. Most junior miners aren’t even profitable yet.
What matters is sentiment. When silver catches a bid, speculative capital floods into the juniors looking for the next 10x stock.
That’s why fund flows are such a key signal right now.
And the inflows into SILJ show that smart money is quietly positioning itself before the crowd.
Now, with only a few analysts watching these names, the price action can be explosive.
But there are other catalysts at play, too….
Silver is one of the most important metals in the supposed green energy transition. It’s a critical component in solar panels and batteries.
And as governments around the world continue to direct towards “clean” energy infrastructure, demand for silver is going to soar.
According to the Silver Institute, global silver demand hit a record 1.24 billion ounces in 2023, and is expected to rise again in 2025.
Industrial demand alone accounts for more than half of that total, and despite fiery rhetoric, it’s still growing fast.
At the same time, supply is tightening…
Major silver mines are aging. New discoveries are becoming harder to find.
And ESG regulations are putting pressure on large miners, which makes juniors with ready-to-go projects even more valuable.
This supply-demand squeeze sets up a strong long-term case for higher silver prices. And the juniors are sitting in the sweet spot to benefit.
Despite all this, silver stocks remain massively under-owned…
Most investment portfolios have zero exposure to precious metals, let alone small-cap silver miners.
That’s a setup for a big rotation once silver hits the mainstream news cycle again.
We’ve seen this before, by the way…
In 2011, silver went on a massive run to nearly $50 per ounce.
During that time, many junior miners posted 5x, 10x, even 20x returns. Investors who caught that wave early changed their financial lives.
Could it happen again? The setup is certainly there…
Rising demand, tight supply, and a total lack of investor interest are the ingredients for explosive gains.
So what should investors do?
Start by getting educated. Look into funds like SILJ or build a watchlist of individual junior miners with proven resources, good management, and operations in mining-friendly jurisdictions.
Expect volatility. These stocks are not for the faint of heart. But the upside is hard to ignore.
At the very least, investors should recognize that the silver market is waking up. And the biggest gains are likely to come from the companies no one is paying attention to.
Yet.
