Analysis of Volatility in Gold and Silver Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy PAAS?
Source: stocktwits
- Gold Price Decline: Spot gold fell over 1% to $4,899.8 per ounce, reflecting market uncertainty about future trends, which may lead investors to reassess their asset allocation strategies.
- Silver Futures Surge: March 2026 silver futures rose approximately 62% to $85.1 per ounce, indicating strong market demand for silver, particularly after price corrections that attracted significant speculative capital.
- Zhongcai Futures Profitability: According to the Financial Times, Zhongcai Futures earned over $500 million during the silver rout, demonstrating its successful establishment of large short positions amidst market volatility, thereby solidifying its position in the industry.
- Market Sentiment Shift: Despite declines in silver mining stocks like First Majestic and Hecla Mining by over 2%, retail sentiment for iShares Silver Trust and SPDR Gold Shares ETF remains in the 'extremely bullish' territory, indicating strong investor confidence in future market performance.
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Analyst Views on PAAS
Wall Street analysts forecast PAAS stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 54.590
Low
43.19
Averages
49.70
High
55.00
Current: 54.590
Low
43.19
Averages
49.70
High
55.00
About PAAS
Pan American Silver Corp. is a producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. It owns a 100% interest in the Escobal mine in Guatemala, and it holds interests in exploration and development projects. Its segments include Silver, Gold and Other. Silver segment includes operations of La Colorada, Huaron, San Vicente, Cerro Moro, La Colorada Skarn, Navidad and Escobal. Gold segment includes operations in Dolores, Shahuindo, Timmins, Jacobina, El Penon and Minera Florida. La Colorada mine produces silver-rich lead and zinc concentrates from a flotation plant treating sulfide ore. Huaron mine produces silver-rich zinc, lead and copper concentrates using floatation technology. It owns 44% joint venture interest in the Juanicipio silver mine in Zacatecas, Mexico, operated by Fresnillo plc, along with 100% ownership of the Larder exploration project and a 100% earn-in interest in the Deer Trail exploration project.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Silver Prices Surge 6.6% Amid Strong Gold Demand
- Silver Price Surge: April silver futures rose 6.6% to $86 an ounce, reflecting a significant increase in market demand for silver ahead of the Lunar New Year, which boosted mining stocks.
- Gold Price Recovery: Spot gold prices increased by 1.8% to $5,113.6 per ounce, surpassing the $5,000 mark, indicating strong investor demand for gold, particularly as the Chinese New Year approaches.
- Weak Dollar Impact: The DXY index dipped 0.2% to 96.3, with the weaker dollar providing support for gold and silver prices, further enhancing the investment appeal of precious metals in the market.
- Mining Stocks Performance: Silver mining companies First Majestic and Hecla Mining gained over 4% in pre-market trading, reflecting optimistic sentiment in the precious metals sector and investors' expectations for future price increases.
See More
Analysis of Volatility in Gold and Silver Markets
- Gold Price Decline: Spot gold fell over 1% to $4,899.8 per ounce, reflecting market uncertainty about future trends, which may lead investors to reassess their asset allocation strategies.
- Silver Futures Surge: March 2026 silver futures rose approximately 62% to $85.1 per ounce, indicating strong market demand for silver, particularly after price corrections that attracted significant speculative capital.
- Zhongcai Futures Profitability: According to the Financial Times, Zhongcai Futures earned over $500 million during the silver rout, demonstrating its successful establishment of large short positions amidst market volatility, thereby solidifying its position in the industry.
- Market Sentiment Shift: Despite declines in silver mining stocks like First Majestic and Hecla Mining by over 2%, retail sentiment for iShares Silver Trust and SPDR Gold Shares ETF remains in the 'extremely bullish' territory, indicating strong investor confidence in future market performance.
See More
Gold and Silver Futures Prices Surge After Selloff
- Gold Futures Rebound: March 2026 gold futures surged 5.9% to $4,912 per ounce, indicating a recovery in market sentiment after a three-day decline, with expectations of further increases to $7,500 in the future.
- Silver Futures Surge: March 2026 silver futures jumped 12.8% to $86.8 per ounce, reflecting a reassessment of prices by investors, with potential for silver to reach $300 by summer 2026.
- Market Sentiment Reset: Analyst Peter Fertig noted that the market was oversold following Trump's nomination of a new Fed chair, and the current rebound is attracting profit-taking investors back into the market, highlighting strong demand for precious metals.
- Mining Stocks Rise: The rebound in precious metal prices lifted shares of silver miners like First Majestic and Hecla Mining by around 5%, while gold miners Newmont and Barrick Gold saw increases of 4% and 5%, respectively, indicating optimistic sentiment towards mining stocks.
See More
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- Cost and Volatility Comparison: The Global X Silver Miners ETF (SIL) has an expense ratio of 0.65%, while the iShares Gold Trust (IAU) charges only 0.25%, making IAU more appealing to cost-conscious investors; additionally, SIL exhibits higher volatility with a beta of 1.42, indicating significant price swings compared to the S&P 500.
- Return and Risk Assessment: As of January 30, 2026, SIL's one-year return stands at 167.4%, compared to IAU's 72.9%, suggesting higher potential returns for SIL, but its maximum drawdown of -55.63% highlights greater risk, necessitating careful consideration of risk versus reward by investors.
- Portfolio Composition: SIL exclusively invests in silver mining companies, holding 41 firms including Wheaton Precious Metals and Pan American Silver, which makes its performance susceptible to individual company factors, whereas IAU directly tracks gold prices, offering more stable investment returns.
- Market Liquidity and Investment Strategy: IAU boasts $79.7 billion in assets under management, representing a highly liquid way to invest in gold, while SIL's $6.3 billion in assets indicates lower liquidity, prompting investors to consider their investment goals and risk tolerance when making choices.
See More
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- Significant Performance Improvement: In Q3 2025, Hecla Mining's sales surged by 67% year-over-year, propelling earnings per share from break-even last year to $0.15, demonstrating the positive impact of rising precious metal prices amid increasing geopolitical and economic uncertainty.
- Revenue Structure Analysis: In Q3 2025, silver accounted for 48% of Hecla's total revenue, with gold at 37%, and lead and zinc making up the remainder, indicating the company's heavy reliance on precious metals, where future price fluctuations will directly affect its financial health.
- Stable Dividend Policy: Despite improved financial results, Hecla's annual dividend remains at $0.015 per share, as management prioritizes debt repayment and reinvestment in the business, a capital allocation decision that may impact investor return expectations.
- Market Volatility Risks: Given the recent pullback in precious metal prices, investors should not expect significant dividends from Hecla Mining, especially in a highly volatile market, suggesting that those seeking stable dividends may need to look elsewhere.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Silver Prices Surge 6.6% Amid Strong Gold Demand
- Silver Price Surge: April silver futures rose 6.6% to $86 an ounce, reflecting a significant increase in market demand for silver ahead of the Lunar New Year, which boosted mining stocks.
- Gold Price Recovery: Spot gold prices increased by 1.8% to $5,113.6 per ounce, surpassing the $5,000 mark, indicating strong investor demand for gold, particularly as the Chinese New Year approaches.
- Weak Dollar Impact: The DXY index dipped 0.2% to 96.3, with the weaker dollar providing support for gold and silver prices, further enhancing the investment appeal of precious metals in the market.
- Mining Stocks Performance: Silver mining companies First Majestic and Hecla Mining gained over 4% in pre-market trading, reflecting optimistic sentiment in the precious metals sector and investors' expectations for future price increases.
See More
Analysis of Volatility in Gold and Silver Markets
- Gold Price Decline: Spot gold fell over 1% to $4,899.8 per ounce, reflecting market uncertainty about future trends, which may lead investors to reassess their asset allocation strategies.
- Silver Futures Surge: March 2026 silver futures rose approximately 62% to $85.1 per ounce, indicating strong market demand for silver, particularly after price corrections that attracted significant speculative capital.
- Zhongcai Futures Profitability: According to the Financial Times, Zhongcai Futures earned over $500 million during the silver rout, demonstrating its successful establishment of large short positions amidst market volatility, thereby solidifying its position in the industry.
- Market Sentiment Shift: Despite declines in silver mining stocks like First Majestic and Hecla Mining by over 2%, retail sentiment for iShares Silver Trust and SPDR Gold Shares ETF remains in the 'extremely bullish' territory, indicating strong investor confidence in future market performance.
See More
Gold and Silver Futures Prices Surge After Selloff
- Gold Futures Rebound: March 2026 gold futures surged 5.9% to $4,912 per ounce, indicating a recovery in market sentiment after a three-day decline, with expectations of further increases to $7,500 in the future.
- Silver Futures Surge: March 2026 silver futures jumped 12.8% to $86.8 per ounce, reflecting a reassessment of prices by investors, with potential for silver to reach $300 by summer 2026.
- Market Sentiment Reset: Analyst Peter Fertig noted that the market was oversold following Trump's nomination of a new Fed chair, and the current rebound is attracting profit-taking investors back into the market, highlighting strong demand for precious metals.
- Mining Stocks Rise: The rebound in precious metal prices lifted shares of silver miners like First Majestic and Hecla Mining by around 5%, while gold miners Newmont and Barrick Gold saw increases of 4% and 5%, respectively, indicating optimistic sentiment towards mining stocks.
See More
Comparative Analysis of Silver Miners ETF and Gold Trust
- Cost and Volatility Comparison: The Global X Silver Miners ETF (SIL) has an expense ratio of 0.65%, while the iShares Gold Trust (IAU) charges only 0.25%, making IAU more appealing to cost-conscious investors; additionally, SIL exhibits higher volatility with a beta of 1.42, indicating significant price swings compared to the S&P 500.
- Return and Risk Assessment: As of January 30, 2026, SIL's one-year return stands at 167.4%, compared to IAU's 72.9%, suggesting higher potential returns for SIL, but its maximum drawdown of -55.63% highlights greater risk, necessitating careful consideration of risk versus reward by investors.
- Portfolio Composition: SIL exclusively invests in silver mining companies, holding 41 firms including Wheaton Precious Metals and Pan American Silver, which makes its performance susceptible to individual company factors, whereas IAU directly tracks gold prices, offering more stable investment returns.
- Market Liquidity and Investment Strategy: IAU boasts $79.7 billion in assets under management, representing a highly liquid way to invest in gold, while SIL's $6.3 billion in assets indicates lower liquidity, prompting investors to consider their investment goals and risk tolerance when making choices.
See More
Hecla Mining Shares Surge 290%, But Dividend Policy Remains Unchanged
- Significant Performance Improvement: In Q3 2025, Hecla Mining's sales surged by 67% year-over-year, propelling earnings per share from break-even last year to $0.15, demonstrating the positive impact of rising precious metal prices amid increasing geopolitical and economic uncertainty.
- Revenue Structure Analysis: In Q3 2025, silver accounted for 48% of Hecla's total revenue, with gold at 37%, and lead and zinc making up the remainder, indicating the company's heavy reliance on precious metals, where future price fluctuations will directly affect its financial health.
- Stable Dividend Policy: Despite improved financial results, Hecla's annual dividend remains at $0.015 per share, as management prioritizes debt repayment and reinvestment in the business, a capital allocation decision that may impact investor return expectations.
- Market Volatility Risks: Given the recent pullback in precious metal prices, investors should not expect significant dividends from Hecla Mining, especially in a highly volatile market, suggesting that those seeking stable dividends may need to look elsewhere.
See More
