Weekly Market Recap (November 28) – Silver Steals Spotlight from Gold

Often playing the bridesmaid to gold’s starring role in the precious metals arena, silver is now stepping into the spotlight. It is quietly proving its mettle with superior returns and a compelling long-term outlook backed by its own unique fundamentals.

Since October 2023, spot silver has embarked on a sustained rally, skyrocketing 163% from a low of $20.67 per ounce to a record high of $54.38 this year. This performance eclipsed the 142% gain in spot gold over the same period. Historically, silver has often delivered higher percentage returns than its more illustrious peer, as evidenced by its 431% surge between October 2008 and April 2011, far outpacing gold’s rise.

Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) has made significant new silver discoveries at its Haldane silver property adjacent to Hecla Mining’s high grade silver mine in the famous Keno Hill District in Canada’s Yukon Territory. The company is ideally positioned to further prove out and expand these discoveries, a stage of the mining development curve traditionally associated with the largest potential value increases for investors. Silver North also has the Tim Property, which it has optioned to Coeur Mining, in the emerging Silvertip district in southern Yukon.

While silver undoubtedly gets a tailwind from gold’s momentum, its own investment case is far more robust. The core bullish narrative for silver hinges on a potent mix of booming industrial demand and constrained supply.

On the demand side, the driving force is the explosive growth in the solar photovoltaic sector. According to LSEG data, industrial silver demand for solar panels reached 243.7 million ounces in 2024, a staggering 158% increase from 2020. Estimates suggest that the solar industry alone could add approximately 150 million ounces to annual silver demand by 2030. On the supply side, the market is struggling to keep up. The silver market deficit ballooned to 501.4 million ounces in 2024, a dramatic increase from a mere 19.4 million ounces in 2023, as reported by LSEG.

Adding fuel to the fire, a new risk has emerged from the world’s top consumer: China.

Inventories in warehouses linked to the Shanghai Futures Exchange have plunged to their lowest since 2015, while stocks on the Shanghai Gold Exchange have shrunk to a more than nine-year low. This inventory drain means China may be unable to provide a buffer for the global market in the near term. The tightness is evident in the Shanghai market, where near-term contracts are trading at a premium to later-dated ones—a pattern known as backwardation that signals severe short-term supply pressure.

Further complicating the landscape are potential US tariffs on silver and a recent tax revamp in China that unexpectedly spurred silver demand as some gold retailers shifted their focus.

“Most of the physical demand today for silver out of London is associated with pure speculative demand,” noted Daniel Ghali, commodity strategist at TD Securities. Pinning hopes for relief on China’s off-exchange stockpiles, he added, “It remains unclear how much of the invisible inventory there is in China.”

Looking ahead, the silver market is walking a tightrope, pulled higher by the green energy revolution yet constrained by chronically weak supply growth. Its quiet but powerful rally may just be the beginning of a long-term revaluation.