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Investing.com -- Shares of silver mining companies experienced significant gains today following a surge in spot silver prices, which soared to their highest level in 13 years. Endeavour Silver (NYSE:EXK) led the rally with an 8% increase, closely followed by First Majestic Silver (NYSE:AG), up 7%, and both Hecla Mining and Coeur Mining (NYSE:CDE), which rose 6%. Other notable increases included Pan American Silver (NYSE:PAAS) and AngloGold Ashanti, both climbing 4.5%, Fortuna Mining up 4.4%, Silvercorp Metals (NYSE:SVM) with a 4% gain, Kinross Gold (NYSE:KGC) rising 2%, and Agnico Eagle (NYSE:AEM) Mines advancing 1.75%.
The driver behind the uptick in silver mining stocks is the notable surge in spot silver prices, which hit a high of $36.15 an ounce. The precious metal’s price jump was attributed to a combination of factors including technical momentum, improving fundamentals, and a growing interest from investors seeking safe-haven assets.
Gold and silver often move in tandem, and the past year has seen gold prices increase by 44%, bolstered by an expanding US-led tariff war and consistent buying by central banks. Silver, which has risen approximately 20%, has not kept pace with gold until now. The recent gains in silver are also supported by substantial inflows into silver-backed exchange-traded funds (ETFs). Holdings in these ETFs increased by 2.2 million ounces on Wednesday, according to Bloomberg data. Additionally, money managers have raised their bullish positions on Comex silver futures as of the week ending May 23.
Silver’s unique position as both a financial asset and an industrial material, particularly in clean-energy technologies like solar panels, contributes to its appeal.