Silver prices crashed over 15% worldwide, dropping to around $98 an ounce after peaking above $120 recently. Shocking, right?
The Big Crash Explained:
Traders are calling it a bloodbath. Silver plunged from highs fueled by weak dollar vibes and safe-haven buying amid Trump-era policy talks. But boom—margin hikes by CME Group forced liquidations, wiping out small players overnight.
Profit-taking kicked in hard too. After a 50%+ January rally, everything was overbought—like that friend who parties too wild and crashes. Dollar strengthened on upbeat US data, killing the buzz.
Geopolitics cooled off a bit. Less Iran tension, no big tariff scares right now. Industrial demand from solar and EVs holds strong, but short-term panic rules.
Pan American Silver's Numbers:
market cap around $7-8B lately (estimates vary post-rally). P/E? Forward looks like 20-25x, way below some hype peers.
Industry average P/E hovers 15-30x for miners, depending on silver's wild ride.
Dividend yield? About 1.5-2%, pays quarterly—nice for holders. ROE around 8-10%, profit growth YoY positive at 20%+ in spots. Not bad, but silver crush hurts everyone.
Pan American started in 1994, founded by that Canadian crew spotting silver opps in Latin America. Grew by grabbing mines in Peru, Mexico, Argentina. Now world's second-biggest primary silver producer.
How They Make Money?
Business model: Straight mining. Dig silver, some gold byproduct. Sell to refiners, jewelers, industries. Services? Mostly production, hedging futures to dodge crashes like today's.
Products: Silver bars, doré. Big on solar panels (40% demand), EVs, electronics. Streaming deals too—like Wheaton, where they fund mines for % output. Smart, low-risk cash.
Short-term, could dip more to $90 support if dollar stays strong. But rebound likely—supply deficits hit 35M oz yearly.
2026: Analysts eye $150-200/oz average. Rally cools but industrial pull strong.
2030? $300-400 possible with solar boom.
2035: $500-600, if deficits persist. 2040? Wild guess $700+, but who knows—AI chips, green tech could explode it. Or recession tanks it. Kiyosaki says $200 by '26, bullish dude.