Analysis of Volatility in Gold and Silver Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAAS is 49.70 USD with a low forecast of 43.19 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 52.410
Low
43.19
Averages
49.70
High
55.00
Current: 52.410
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.
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
Gold Futures Drop While Silver Futures Rise Amid Market Volatility
- Gold Futures Decline: March 2026 gold futures fell 1% to $4,717 per ounce, reflecting increasing selling pressure in the precious metals market, despite JPMorgan's forecast of gold prices reaching $6,300 by year-end, indicating potential future demand.
- Silver Futures Rise: Although spot silver prices plummeted over 26% on Friday, March 2026 silver futures gained 2.7% to $80.6 per ounce, suggesting persistent demand for silver that may attract investors back into the market.
- Dollar Index Rises: The U.S. Dollar Index (DXY) increased by 0.1% to 97.3 in pre-market trading, indicating the dollar's strength is exerting pressure on the precious metals market, prompting investors to reassess their asset allocations.
- ETF Performance Declines: The iShares Silver Trust (SLV) slid to its lowest level since January 9 in pre-market trading, with Friday's sell-off wiping out its year-to-date gains from around 80% to approximately 30%, reflecting a dramatic shift in market sentiment.
See More
Comparative Analysis of SLV and SIL Silver ETFs
- Fee Structure Comparison: SLV charges a lower expense ratio than SIL, indicating that SLV is more cost-effective as an ETF tracking physical silver prices, while SIL's higher costs reflect its investment in 39 global silver mining companies, despite offering dividend income.
- Portfolio Composition: SIL focuses on silver mining companies within the basic materials sector, with major holdings including Wheaton Precious Metals and Pan American Silver, meaning its performance is influenced by both silver prices and company-specific factors.
- Performance Discrepancy: Over the past five years, SLV has outperformed SIL with a $1,000 investment return and a smaller maximum drawdown, showcasing SLV's advantages in risk management.
- Investment Strategy Choice: Opting for SLV suits investors looking for direct exposure to silver prices, while SIL appeals to those seeking higher potential returns through silver mining companies, albeit with greater associated risks.
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
Gold Futures Drop While Silver Futures Rise Amid Market Volatility
- Gold Futures Decline: March 2026 gold futures fell 1% to $4,717 per ounce, reflecting increasing selling pressure in the precious metals market, despite JPMorgan's forecast of gold prices reaching $6,300 by year-end, indicating potential future demand.
- Silver Futures Rise: Although spot silver prices plummeted over 26% on Friday, March 2026 silver futures gained 2.7% to $80.6 per ounce, suggesting persistent demand for silver that may attract investors back into the market.
- Dollar Index Rises: The U.S. Dollar Index (DXY) increased by 0.1% to 97.3 in pre-market trading, indicating the dollar's strength is exerting pressure on the precious metals market, prompting investors to reassess their asset allocations.
- ETF Performance Declines: The iShares Silver Trust (SLV) slid to its lowest level since January 9 in pre-market trading, with Friday's sell-off wiping out its year-to-date gains from around 80% to approximately 30%, reflecting a dramatic shift in market sentiment.
See More
Comparative Analysis of SLV and SIL Silver ETFs
- Fee Structure Comparison: SLV charges a lower expense ratio than SIL, indicating that SLV is more cost-effective as an ETF tracking physical silver prices, while SIL's higher costs reflect its investment in 39 global silver mining companies, despite offering dividend income.
- Portfolio Composition: SIL focuses on silver mining companies within the basic materials sector, with major holdings including Wheaton Precious Metals and Pan American Silver, meaning its performance is influenced by both silver prices and company-specific factors.
- Performance Discrepancy: Over the past five years, SLV has outperformed SIL with a $1,000 investment return and a smaller maximum drawdown, showcasing SLV's advantages in risk management.
- Investment Strategy Choice: Opting for SLV suits investors looking for direct exposure to silver prices, while SIL appeals to those seeking higher potential returns through silver mining companies, albeit with greater associated risks.
See More
