Bundesbank causes a sensation in the silver market: Silver North Resources, Fresnillo, Wheaton Precious Metals

Analysts confident about the price of silver

In addition to rising demand for silver, the supply deficit also speaks in favor of the precious metal: HSBC estimates the supply deficit in the current year at 206 million ounces, up from 167 million ounces in the previous year. Citigroup is also bullish. No wonder, then, that shares in silver companies are increasingly in demand. One of the top choices for investors is Fresnillo. The world's leading silver producer mines between 50 and 55 million ounces of silver and an additional 0.9 million ounces of gold annually in Mexico. In the second quarter of 2025, production fell by a whopping 14.7% compared to the same quarter last year. The Company cited bad weather as the reason for this decline, which affected production. It also mined rock with lower grades during this quarter. Despite the recent rally in the stock, analysts remain cautiously optimistic, and the majority of them are issuing "Buy" recommendations.

Shares of large silver companies near their all-time highs

Wheaton Precious Metals has an interesting business model in the silver sector. The Company claims to be the world's largest silver streamer. Wheaton Precious Metals purchases silver from producers in advance at a fixed price. This allows producers to refinance or ensure planning security. This business model is relatively low-risk, as Wheaton does not bear the operating costs and risk factors of the mines and, in return, secures favorable prices for silver. Wheaton currently holds streaming and licensing agreements for around 20 mines in production and 26 development projects. According to the Company, 83% of its allocated production shares come from mines in the lower half of the cost curve – enhancing its operational flexibility and suggesting attractive profit margins. The stock is trading just below its all-time high.

Silver North Resources: Waiting for the ongoing drilling program

The stock of Silver North Resources has also risen in recent months. As an exploration company that does not produce but exclusively searches for new silver deposits, its value depends on the operational success of the Company and has the most potential. This is especially true if Silver North Resources succeeds in proving new deposits or advancing existing projects in such a way that it becomes more likely that they will one day become a producing mine.

Silver North's main project is Haldane in the famous Keno Hill district in the Yukon, Canada. The property is located just 25 km west of the active Hecla mine. Haldane has several high-grade silver-lead veins. In the course of previous drilling programs, the Company achieved spectacular results, such as 1.83 m with 1088 g/t Ag in 2024. The management team, led by CEO Jason Weber, is focusing on moderate investments and is partly co-financed by government grants and partner investments. Drilling this year is expected to expand on existing discoveries. "The main zone has shown strong potential in terms of both its high grades and its large mineralization widths. The current program aims to build on last year's results and expand beyond the discovery section," Weber said at the start of the drilling program in mid-August.

Exploration companies still have potential – Here is what matters!

Even though Silver North Resources has already achieved some good drill results, the Haldane project is still at an early stage. For investors, this offers opportunities – while numerous analysts scrutinize the production plans of large producers and ensure maximum transparency with their own assessments, the situation is different for exploration companies. Every drill result has the potential to spark new excitement – for producers, even a 10% increase in silver production in a single quarter is considered a surprise. For exploration companies, completely new mineralization zones with significant grades can turn a stock into a highly sought-after takeover target overnight.

Investors who decide to invest in silver stocks due to the unique market situation should always keep an eye on promising exploration companies in addition to well-known producers. When the key data of projects and management align, these stocks still offer potential even in the current market phase. Silver North Resources' stock could prompt a revaluation upon the release of the first results from the ongoing drilling program. Therefore, investors should thoroughly familiarize themselves with the Company.