Silver has surged in recent years, catching up with gold after a long period of underperformance. Importantly for investors, the silver market has now settled back to more sustainable levels — creating a potential opportunity before the next leg higher.

For investors looking at ASX silver stocks, the setup is increasingly compelling.
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Investing in silver stocks

Silver is unique among commodities because it is both:

• A precious metal (safe-haven investment like gold)

• An industrial metal (critical to electrification and technology)

This dual role means silver benefits from:

• Industrial growth

• Investor demand

• Supply shortages

Silver is also the most electrically conductive metal, driving rising demand from EVs, solar energy and solar panels, electronics and data infrastructure — similar to copper but with stronger upside leverage.

At the same time, global silver mine production is struggling to grow, creating a structural supply deficit.

Best silver stocks ASX

Mining Stocks with silver resource

There are 6-10 asx stocks that are pure silver companies on the ASX but 200-25 with meaningful silver exposure. Most Australian silver comes from lead-zinc mines, not standalone silver mines.

Silver Mines Ltd (ASX: SVL) that owns Bowdens Silver Project (NSW) is Australia’s largest undeveloped silver mine.
Unico Silver Limited (ASX: USL) is an ASX-listed silver exploration and development company building a large primary silver resource  in Argenina (Patagonia).
Andean Silver Limited (ASX: ASL) is an ASX listed silver exploration company focused on high-grade silver deposits in South America.
Adriatic Metals Plc (ASX: ADT) is a significant silver mining company on the ASX.
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Our favourite Australian silver stocks are:

South32 (S32)

Diversified miner with silver exposure (lower risk). It’s Cannington mine is underground
Share price: 4.36

Sun Silver (SS1)

ASX Small cap stock, pure-play silver explorer/developer (higher leverage). It is developing the Maverick Springs Project (Nevada, USA) which is a very large gold and silver system. Some high-grade pockets exist but it is not dominant and sun silver offers scale and large bulk mining.
Share price:

Silver demand is rising. Supply is shrinking. Smart investors are positioning early.
At Under the Radar Report, we uncover high-potential ASX resource stocks before the market catches on.

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Demand for Silver Is Strong and Growing

More than 50% of global silver demand comes from industry, highlighting its strategic importance.

Silver is widely used in:

• Electrical contacts and conductors

• Circuit boards and electronics

• Soldering and brazing alloys

• Consumer appliances and industrial equipment

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Major Growth Drivers for the silver market

1. Electrification & EV Growth
Silver is essential for electrical conductivity in electric vehicles and power systems.

2. Solar Energy Boom
Silver paste is a key material in photovoltaic (PV) solar cells — one of the fastest-growing sources of demand globally.

3. Technology & Digital Infrastructure
Silver demand is rising in:

• 5G telecommunications

• Data centres and high-performance computing

• Advanced electronics

4. Emerging Applications

• Antimicrobial medical coatings

• Water purification systems

• Medical textiles

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Investment and Monetary Demand

Silver is not just an industrial metal — it remains a precious metal investment.

• Physical silver (bars and coins) remains popular

• Silver ETFs provide easy access for investors

• Jewellery demand accounts for ~25% of total demand

• Central banks and governments are increasing recognition of silver as a strategic metal

Silver demand typically rises during:

• Inflation

• Economic uncertainty

• Currency instability

• Commodity bull markets

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Silver mine Supply Is Constrained

Global silver production is concentrated and struggling to grow.

Largest Producers

• Mexico (~25% of global supply)

• China

• Peru

• Chile, Bolivia, Poland, Russia, Australia and the US

Mine supply has declined from ~900Moz (million ounces) in 2016 to ~820 million ounces of silver today.
Australia is in the top 5-10 global producers with a strong resouce base in New South Wales and Queensland.

Why Supply Growth Is Difficult

• New mines take years to develop

• ~70% of silver is produced as a by-product of other metals

• Higher silver prices do not immediately boost production

Recycling Helps — But Is Limited

Silver recycling is rising but remains a small share of total supply.

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The Structural Deficit

Rising industrial demand + constrained mine supply = long-term silver deficit

This imbalance is one of the strongest drivers of future price appreciation.

Silver also tends to outperform gold in bull markets due to:

• Smaller market size

• Higher volatility

• Greater upside leverage

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Silver and Gold

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Silver Price Outlook

Silver finally joined the commodity rally late last year and didn’t it pop. Up 167% from its previous historical high of US$43.60/oz at the end of last September, climbing to US$116.50 at the end of January. Now we are seeing how quickly markets can change with half of those gains conceded in 2 weeks. We think silver is back at back where it should be.

Silver remains fundamentally well supported:

• Industrial demand accelerating

• Supply constrained

• Strategic metal status rising

• Safe-haven appeal during uncertainty

After its strong run and recent pullback, silver appears to be in a healthy consolidation phase — often a precursor to the next move higher.

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Australian Silver Stocks and where to invest

Lower Risk Exposure

South32 (S32)
Diversified miner with silver exposure and lower volatility.

Higher Growth Exposure

Sun Silver (SS1)
Pure-play silver developer offering stronger leverage to rising silver prices.

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Risks to the Silver Investment Case

• Commodity price volatility

• Global economic slowdown

• Strong USD

• Delays in solar / EV demand growth

However, long-term fundamentals remain supportive.

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Conclusion: Silver in a Strong Position

Silver sits at the intersection of:

• Electrification

• Technology

• Precious metals

• Supply scarcity

This combination makes silver one of the most compelling commodities in the current cycle.

For investors, the current consolidation phase may represent an attractive entry point before the next price move.

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