Investment Value Analysis of Gold Stocks and Silver Mining Companies Against the Backdrop of Skyrocketing Precious Metals Prices

From 2025 to early 2026, the precious metals market experienced the strongest upward cycle since the 1970s. Both gold and silver prices recorded their best annual performance in decades [1][2]:

Commodity	2025 Gain	YTD 2026 Gain	Current Price Level
Gold	+65%	+22%	Above $4,600/oz
Silver	+141%	+29%	Above $90/oz

This rally marks the entry of the precious metals market into a new structural bull market phase. Silver’s performance is particularly outstanding, benefiting not only from traditional safe-haven demand but also from surging industrial demand and a persistent supply gap [1].

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According to the latest trading data, precious metals mining stocks have delivered significant excess returns over the past month and a half (December 2025 to January 2026):

Ticker	Company Name	1-Month Return	Daily Volatility	Business Attribute
SLV	iShares Silver ETF	+53.71%	4.01%	Silver
HL	Hecla Mining	+55.57%	4.87%	Silver Mining Company
GOLD	Gold.com	+35.76%	2.73%	Gold
NEM	Newmont	+25.96%	2.43%	Gold
GFI	Gold Fields	+15.44%	2.85%	Gold

1. Amplified Leverage Effect
   : Silver mining companies generally outperformed gold mining companies in stock price gains, with SLV and HL rising 53.71% and 55.57% respectively, far exceeding the average level of gold mining companies (approximately 25.7%) [0]. This is mainly due to:
   • Silver has a lower price base, leading to greater price elasticity
   • Silver mining companies typically have higher operating leverage

2. Volatility and Risk Trade-off
   : The average daily volatility of silver mining companies (approximately 4.4%) is higher than that of gold mining companies (approximately 2.7%), meaning higher risk is accompanied by higher potential returns [0].

3. Valuation Considerations
   : Some analysts have issued warnings on gold stocks with large price gains such as Gold.com, pointing out that current valuation multiples are relatively high, but short-term momentum remains strong [2].

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According to market research and analyst opinions, there are multiple structural drivers behind the surge in demand for safe-haven assets [1][2][3]:

• Intensified Military Actions
  : The U.S. military strikes against Venezuela and escalating tensions with Iran have pushed investors to seek safe-haven in precious metals [2]
• Trade Frictions
  : Uncertainty over a new round of tariff policies has increased market volatility
• Political Instability
  : Controversies over Federal Reserve policies have heightened market concerns about the continuity of monetary policy

• Weakening Economic Indicators
  : U.S. economic data shows slowing growth momentum, enhancing gold’s appeal as a hedge against economic recession [1]
• Inflationary Pressure
  : Persistently expanding fiscal deficits and increased election-related spending have boosted inflation expectations, supporting precious metals prices
• Monetary Policy Shift
  : The market expects the Federal Reserve to cut interest rates multiple times in 2026, and the decline in real interest rates reduces the opportunity cost of holding precious metals [1]

• Solar Energy Industry
  : Demand for silver in the photovoltaic industry continues to climb, and growth is expected to persist until 2030 [1]
• Electric Vehicles and Electronic Products
  : Industrial demand for silver in areas such as new energy vehicles, 5G communications, and AI hardware accounts for more than 50% of global total demand [1]
• Supply Gap
  : The global silver market has seen a supply shortage for the fifth consecutive year, with the gap widening further in 2025 [1]

• ETF Capital Inflows
  : Capital inflows into precious metals ETFs have reached the highest level since 2020 [3]
• Retail Investor Participation
  : A large number of follow-up buying orders were attracted after prices broke through key resistance levels
• Increased Institutional Allocation
  : Precious metals are being added to investment portfolios as a hedge tool at a higher proportion

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Institution/Analyst	Target Price	Timeframe
World Bank	$41	2026
JP Morgan	$58	2026
Saxo Bank	$60-$70	2026
Bank of America	$65	2026
HSBC	$68.25	2026
Citigroup	$100	March 2026
InvestingHaven	$75-$88	2027-2028

Notably, Citigroup gave an extremely optimistic target price of $100, while well-known financial commentator Robert Kiyosaki even predicted that silver could reach the $100-$200 range [1].

• Bank of America
  : Forecasts that the average gold price could reach $4,538/oz in 2026, and may hit $5,000-$8,000 in extreme scenarios [3]
• Institutions including Goldman Sachs
  : Have named gold the “primary hedge asset” and “performance driver” for 2026 [3]

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• Follow the Trend
  : The upward trend of precious metals remains intact, and investors may consider buying on dips
• Volatility Management
  : Silver mining companies have high volatility, so reasonable stop-loss levels should be set
• Diversified Allocation
  : Maintain a balanced allocation between gold and silver mining companies to diversify risks

• Structural Bull Market
  : Supported by multiple overlapping drivers, precious metals still have upside potential in the medium-to-long term
• Industrial Demand Support
  : Silver’s industrial attributes provide additional demand support
• Central Bank Gold Purchases
  : Global central banks’ continuous increase in gold reserves provides floor support for gold prices

• Technical Correction
  : Excessive short-term gains may trigger a technical correction
• Federal Reserve Policy
  : If inflation rebounds and rate cut expectations are dashed, it may put pressure on precious metals
• U.S. Dollar Trend
  : A resurgent U.S. dollar will suppress dollar-denominated precious metals
• Valuation Risk
  : Valuations of some gold stocks are already relatively high, so caution is needed when chasing highs [2]

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The historic surge in precious metals prices has brought significant investment opportunities for gold stocks and silver mining companies. Judging from recent performance,

, but also come with higher volatility risks. offer a relatively stable option, with lower volatility and benefits from gold’s safe-haven demand.

In terms of drivers, this precious metals bull market is supported by both traditional

and structural factors such as and . This multi-factor support makes the upward foundation of the precious metals market more solid.

For investors with a higher risk appetite, focus can be placed on

for phased opportunities; for investors pursuing stability, and are better choices. In any case, in the current market environment, appropriately allocating precious metals-related assets as a hedge in investment portfolios is a worthwhile investment strategy to consider.

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[0] Jinling API Market Data (Precious Metals Stock Trading Data from December 5, 2025 to January 16, 2026)

[1] GoldSilver.com - "Silver Price Predictions 2026: After a 147% Surge, What’s Next?" (https://goldsilver.com/industry-news/article/silver-price-forecast-predictions/)

[2] CNN Business - "2026 chaos has set gold and silver ablaze" (https://www.cnn.com/2026/01/14/business/gold-silver-prices)

[3] Kitco News - "Gold will be the primary hedge and performance driver in 2026, silver could top out between $135 and $309" (https://www.kitco.com/news/article/2026-01-05/gold-will-be-primary-hedge-and-performance-driver-2026-silver-could-top-out)