Shares in Australian silver companies were trading sharply higher on Monday, following a strong week in which the price of silver jumped more than 13%.
Shares in Andean Silver Ltd (ASX: ASL) were 9.9% higher on Monday at $2.55, Unico Silver Ltd (ASX: USL) shares were 11.64% higher at $1.05, and shares in early-stage company Investigator Silver Ltd (ASX: IVR) were 13.1% higher at 14.7 cents.
This followed the silver price increasing 13.8% to $122.75 per ounce in Australian dollar terms over the course of last week.
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Beating gold for gains
MineLife director Gavin Wendt recently published a research note on silver in which he pointed out that the precious metal has outperformed gold in recent times, "with prices swinging sharply as changing economic signals and evolving tariff policies influenced market sentiment''.
Mr Wendt said the strength in the silver price had been underpinned by a number of factors, including a persistent supply deficit, strong industrial demand from the solar industry, and renewed investment flows "as a cheaper alternative to gold''.
Mr Wendt said that uncertainty about whether the US would impose a tariff on silver had led to outflows of the metal from London to the US, resulting in a sharp decline in silver stocks in London, which is the primary trading hub.
Mr Wendt said:
There is … still the possibility of a tariff on silver, with the recent inclusion of the precious metal to the US Geological Survey list of critical minerals increasing the likelihood of US import tariffs.
Macro trends support strong prices
Mr Wendt said as we move further into 2026, silver would continue to be supported by improving investor sentiment towards precious metals "and tightening physical balances''.
He added:
From a macro perspective, silver should benefit from the same drivers expected to support gold – a softer US dollar, Federal Reserve rate cuts, and renewed appetite for safe-haven assets amid geopolitical concerns. Historically, silver has outperformed gold during easing cycles, as lower real yields tend to lift both investor allocation and industrial activity.
Mr Wendt said a key difference to gold was that industrial demand accounted for more than half of total silver consumption.
Demand for solar is likely to slow, particularly in China after a few strong years, however additional demand tailwinds come from electrification, power grid upgrades, and growing use of silver in automotive components, especially in hybrid and battery electric vehicles.
Mr Wendt said silver can "massively outperform gold in a bull market", but it can also fall harder in a downturn, and he expected price volatility to continue this year.
