Silver Back at USD 80: Silver Viper Goes on the Offensive; Caution Advised for Siemens Energy, TKMS, and Rheinmetall

Silver, Security, Supercycle: Why Silver Viper Could Suddenly Become a Takeover Target

Here it is again—the silver price is soaring past USD 80! The cards in the global silver market are currently being reshuffled, as rising precious metal prices collide with an increasingly geopolitically tense commodities sector, where secure production regions suddenly become a strategic advantage. Silver Viper Minerals is increasingly positioning itself as a growth-oriented explorer with a focus on Mexico, one of the world's most historic silver regions. Particularly noteworthy is the recent expansion of the project portfolio through the acquisition of the Coneto project in Durango, which hosts more than 40 known epithermal vein structures across approximately 5,000 hectares and has historically demonstrated high-grade silver and gold mineralization. The fact that the purchase price of approximately USD 15 million was paid entirely in shares signals both capital discipline and an effort to preserve liquidity for aggressive exploration programs.

Additionally, the entry of Fresnillo, one of the world's leading silver producers, as a strategic shareholder lends the transaction a certain industrial seal of approval. Mining has been conducted for centuries in the historic Coneto silver district; however, deeper horizons remain relatively unexplored to this day, offering significant potential for new discoveries. Currently, the flagship La Virginia project continues to deliver impressive drill results, some of which show grades of several hundred grams of silver per ton and exceptional gold values. Institutional investors, in particular, are now taking note that management is developing multiple projects in parallel, thereby reducing the classic concentration risk associated with many junior explorers.

The entire sector is receiving a boost from a structural supply deficit fueled solely by geopolitical conflicts. It is precisely at this point that silver is also becoming increasingly important for Western defence industries, as modern radar systems, high-frequency sensors, satellite communications, precision munitions, and electronic protection systems require significant quantities of highly conductive precious metals. At the same time, market analysts are increasingly warning that the global mining sector has underinvested in new resources for years and that the path from discovery to production often takes more than a decade. In this environment, exploration companies with advanced projects and good infrastructure could suddenly come much more into the spotlight of larger producers, especially since the M&A market in the Latin American silver sector has already gained massive momentum—and CAD 74 million is just a quarter's cash flow for a larger producer. A lot is likely to happen here over the course of the year, so get in now!

CEO Steve Cope presented the company's future exploration strategy in Mexico at the 18th International Investment Forum.

Siemens Energy – Analysts' Price Targets

Energy and network giant Siemens Energy is also heavily dependent on critical metals. With a 1,000% increase since 2024, the stock is the strongest performer in the DAX 40 index and, with a market capitalization of around EUR 150 billion, ranks third behind Siemens and SAP. However, many observers are concerned that, with a 2026 P/E ratio of 43.5, the stock may be getting a bit too far ahead of itself. While many firms remain fundamentally positive, expectations are no longer sky-high, with price targets of EUR 190 from Baader or EUR 200 from Metzler. On the LSEG Refinitiv platform, the 12-month consensus of EUR 175 is even below the current trading price.

The euphoria surrounding the company's exceptional market position in grid infrastructure expansion and AI-driven electricity demand continues to strengthen the company structurally; however, if this momentum slows down somewhat, there is room for disappointment. Many experts are particularly critical of the operational complexity in the wind business at the subsidiary Siemens Gamesa, which continues to be seen as a potential drag on earnings and could weigh on margin stability. Share buybacks and strong news regarding the order backlog are supporting the share price, but they cannot permanently mask fundamental valuation concerns. Overall, the picture is one of a stock that has performed strongly, where opportunities still exist, but the margin of safety has noticeably shrunk, and the risk is increasing asymmetrically. Technically, there is an important support line at EUR 170. Dynamic investors are setting their stop prices just below this level, as short sellers are also waiting for the first entry point here.

Rheinmetall and TKMS – Caution at the Platform Edge

Opinions are divided regarding the two defence stocks, Rheinmetall and TKMS. Despite full order books, the shares are prone to correction. Rheinmetall increased revenue in Q1 2026 by around 46% to approximately EUR 2.3 billion, and order intake, at around EUR 2.9 billion, was clearly in line with expectations. The order backlog reached a historic high of over EUR 60 billion, underscoring the business's long-term visibility. Operating profit (EBIT) rose to around EUR 199 million, with the margin climbing to just under 9%. However, this offered few surprises given the stock's high price levels, which is precisely what typically fuels further upward revaluation. The dynamic growth trajectory has already been priced in, not least due to CEO Papperger's bold promises, with share prices reaching as high as EUR 2,000. No wonder that, amid growing discussions of ceasefires and peace efforts, some steam can be let off. Admittedly, a 40% crash is no small matter here. The "latest entrants" are now licking their wounds, while the dream returns of long-term investors are melting away. Not a pretty scenario, but a necessary correction, given that prices around EUR 2,000 had already priced in business development through 2030. At the current level of around EUR 1,200, the Düsseldorf-based company now has a good chance of a new 50% rally over the next 12 months. Analysts are divided. Deutsche Bank still expects EUR 2,100, while UBS even forecasts EUR 2,200. However, a real stab in the back is JPMorgan's downgrade to EUR 1,500 and "Neutral" instead of "Overweight" rating. The days of gains of several hundred percent are likely over for now!

One more side note on TKMS: A bidding war has broken out over the naval shipbuilder German Naval Yards Kiel (GNYK): Defence giant Rheinmetall has thrown its hat into the ring, thereby posing serious competition to thyssenkrupp's defence subsidiary TKMS. TKMS is currently in the process of finally separating from its parent company. If Rheinmetall now disrupts the external expansion with a significantly higher offer, that is likely bad news for both companies. For TKMS, it would have been an important step, but for Rheinmetall, an overpriced acquisition. The TKMS stock immediately took a nosedive, plunging 13%. Trends for many defence stocks turned from green to red last week. Caution is now warranted, as these stocks have been trading at significant valuation premiums for months. Such trends can reverse when key technical levels are breached!

The stock market is all over the place. To blame are the constantly shifting news reports that the US President disseminates via his own platform, Truth Social. The fact that large oil positions were consistently taken just before major news releases would be a goldmine for local regulatory authorities; in the US, however, far too little is being said about this. Commodity stocks are also being tossed back and forth. Some high-tech darlings have recently reached valuations that call for caution. Even in the defence sector, the one-way street now seems to have come to an end.