How silver prices reacted to market shifts

Tuesday, 11 August 2026

thesilverletter.com

Est. 2026

Silver & Precious Metals Intelligence

Market Commentary

Silver Falls, but Traders Anticipate a Demand Lift

Silver prices experienced a slight decline of 0.5%, breaking a two-session winning streak, while gold managed to rise by 0.5% for the third consecutive day. This divergence in performance highlights the ongoing dynamics between the two precious metals, particularly as traders remain optimistic about a potential uptick in industrial demand for silver. Factors such as the increasing adoption of silver in renewable energy technologies and electronics could support this anticipated demand lift, especially as global economies continue to recover. The gold/silver ratio remains a critical indicator, and its current levels suggest that silver may be undervalued relative to gold, which could attract more investors looking for value. Additionally, the strength of the U.S. dollar and inflationary pressures are influencing market sentiment; a weaker dollar typically bolsters silver prices, while persistent inflation can drive investors toward precious metals as a hedge. Fed policy remains a crucial backdrop, as any hints of interest rate adjustments could impact both gold and silver, but currently, the market seems to be pricing in a stable environment. ETF flows have also been a significant driver, and any renewed interest in silver-backed ETFs could provide additional support for prices. Meanwhile, mine supply remains steady, but any disruptions could further tighten the market and enhance price movements. Overall, while silver has faced a minor setback, the underlying fundamentals suggest that traders are cautiously optimistic about a rebound in demand that could support prices in the near term.

Gold Nears Two-Month High Ahead of Wednesday's CPI Report

Gold's ascent towards a two-month high, nearing $4,450, is indicative of a broader shift in market sentiment as investors brace for the upcoming Consumer Price Index (CPI) report. This rising gold price often exerts upward pressure on silver, as both metals tend to move in tandem, driven by similar factors such as inflation expectations and safe-haven demand. With inflation concerns looming, especially in light of the stalled Iran talks and climbing oil prices, silver could see increased interest from investors looking to hedge against rising costs. The gold/silver ratio remains a critical metric to watch; if gold continues to strengthen, silver may lag behind, potentially widening the ratio, which could deter some investors from silver in favor of gold. However, should silver maintain its industrial demand, particularly in sectors like electronics and renewable energy, it may still attract buyers despite the relative performance against gold. Additionally, ETF flows into silver have been somewhat mixed, reflecting a cautious approach from investors as they await clearer signals from the CPI report and Federal Reserve policy. The Fed's stance on interest rates will be pivotal; if inflation persists, it could prompt a more aggressive monetary policy, impacting both metals. Mine supply remains relatively stable, but any disruptions could further tighten the market, adding upward pressure on prices. Overall, as traders digest these developments, silver's trajectory will likely be influenced by gold's performance and the broader economic indicators revealed in the CPI report. Investors should remain vigilant, as the interplay between these factors could create both opportunities and challenges in the silver market.

Prediction: Gold Will Rise Back to Over $5,000 Before the End of the Year

The prediction that gold will rise back to over $5,000 before the end of the year reflects growing concerns among investors about economic stability and inflation, which could have significant implications for silver prices as well. As gold often serves as a safe haven during turbulent times, an increase in gold demand typically leads to a corresponding rise in silver, given its historical role as a precious metal and industrial commodity. With inflationary pressures persisting and the Federal Reserve's policy remaining uncertain, investors may increasingly turn to both gold and silver as hedges against currency devaluation. The gold/silver ratio, which has remained elevated, suggests that silver is undervalued relative to gold, and a surge in gold prices could prompt a reallocation of capital into silver as well. Additionally, industrial demand for silver, particularly in sectors like electronics and renewable energy, continues to provide a supportive backdrop, even as broader economic concerns loom. ETF flows into silver have shown resilience, indicating that investors are positioning themselves for potential upward movements in the metal. If gold does indeed rally significantly, it could catalyze a similar bullish sentiment in the silver market, further tightening supply and demand dynamics. However, any sharp price movements will also depend on how the dollar performs against other currencies, as a stronger dollar could dampen precious metal prices. Overall, while the prediction for gold may seem ambitious, it underscores the interconnected nature of precious metals and the potential for silver to benefit from a renewed focus on safe-haven assets. Silver investors should remain vigilant and consider these market dynamics as they navigate the final months of the year.

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Silver Company News

Excalibur Metals Defines New Silver-Gold Soil Anomalies North of Spyglass Ridge

(TSXV: EXCL) (OTCQB: EXCBF) Excalibur Metals Corp. announced results from expanded soil sampling north of the Spyglass Ridge Target at its Bellehelen Silver-Gold Project in Nye County, Nevada. The results have outlined multiple silver-gold soil anomalies across an approximately one-kilometre-long corridor extending north from Spyglass Ridge, including the newly defined Zigs Target and the extended Broken Cabin Target. Soil sampling at Zigs identified gold values of up to 449 parts per billion and silver values of up to 2.0 parts per million, with multiple samples returning more than 100 ppb gold across a target area measuring approximately 300 m by 300 m. At Broken Cabin, the expanded dataset returned gold values of up to 331 ppb and silver values of up to 7.8 ppm, outlining a broad target area measuring approximately 300 m by 600 m. Bellehelen encompasses a district-scale, 10-kilometre-long mineralized trend that historically produced an estimated 311,000 silver-equivalent ounces in the early 1900s. Historical surface sampling returned high-grade assays of up to 11.25 g/t gold and 3,490 g/t silver. Excalibur Metals Corp. has acquired the option to purchase 100% of the Bellehelen Project in Nye County, Central Nevada.

Alaska Silver Announces C$7.6 Million Pipe Financing to Expand 2026 Drill Program to 9,000 Metres

(TSXV: WAM, OTCQX: WAMFF) Alaska Silver Corp. announced a private investment in public equity financing of up to 13,846,910 units at an offering price of C$0.55 per Unit for aggregate gross proceeds of up to C$7,615,800 (approximately US$5,462,000). Each Unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at C$0.75 for three years following closing. Crescat Capital LLC, a current significant shareholder holding approximately 13.8% of Alaska Silver's outstanding common shares, will participate in the Financing to maintain its ownership interest. The Company currently has a 6,000-metre drilling program underway and intends to increase the program to approximately 9,000 metres. The Illinois Creek Project is a 100%-owned land package totaling 80,895 acres (126.4 square miles or 32,337 hectares) anchored by two resource-level mineralization zones separated by 8 km of high potential exploration ground. The Waterpump Creek zone hosts an Inferred Mineral Resource of 75 Moz AgEq at a grade of 279 g/t silver, 11.28% zinc and 9.87% lead. The historical past-producing Illinois Creek Mine has Indicated Mineral Resources of 260,000 oz gold at 0.92 g/t Au and 8.3 Moz silver at 29.72 g/t Ag, along with Inferred Mineral Resources of 290,000 oz at 0.84 g/t Au and 10.4 Moz silver at 30.11 g/t Ag.

Americas Gold and Silver Provides Notice of Second Quarter 2026 Results and Conference Call

(TSX: USA) Americas Gold and Silver Corporation announced that senior management will host a conference call / webcast on August 14, 2026 at 11:00 a.m. (Eastern Time) to discuss the Company's second quarter 2026 results. Americas plans to issue a news release containing second quarter 2026 results before markets open in North America on Friday, August 14, 2026. The Company's flagship Galena Complex in Idaho is one of the United States' premier silver mining districts and includes the nation's largest antimony mine. The fully permitted Crescent Silver Mine hosts one of the world's highest-grade silver resources and offers significant future growth potential through shared infrastructure and processing. Through a 51/49 joint venture, the Company is developing a fully integrated domestic antimony supply chain-from mine to finished product-to help strengthen America's critical mineral independence. Americas also owns and operates the Cosalá Operations in Sinaloa, Mexico.

Iltani Resources Strengthens Orient Open-Pit Case With Broad Intersections

(ASX: ILT) Iltani Resources has returned another batch of broad silver-lead-zinc-indium intersections from its Orient silver-indium project in north Queensland as a major drilling campaign moves towards completion. Assays from 13 reverse circulation (RC) drill holes across Orient East and Orient West continued to show shallow mineralisation over substantial widths. The current MRE stands at 62.5 million tonnes at 81.5g/t silver equivalent (AgEq), comprising 38.8Mt in the Indicated category and 23.7Mt Inferred. Among the standout results was a 100-metre intersection grading 73 grams per tonne AgEq from 83m, while another hole returned 42m at 140g/t AgEq from 120m. Four Orient East holes encountered massive sulphide intervals above 1,000g/t AgEq, including a 2m section grading 1,479g/t AgEq from 147m. With 86 of 110 holes now completed from the initial program, drilling is expected to finish in September before the results are incorporated into an updated mineral resource estimate (MRE) targeted for the fourth quarter of 2026. Iltani expects the track-mounted RC rig to complete the initial program within about four to five weeks, after which it may add further holes based on the results while progressing the updated MRE and scoping study in 2027.

SILVERCORP REPORTS ADJUSTED NET INCOME of $53.9 MILLION, $0.24 PER SHARE, and CASH FLOW FROM OPERATING ACTIVITIES of $61.7 MILLION for Q1 FISCAL 2027

(TSX: SVM) Silvercorp Metals Inc. reported its financial and operating results for the three months ended June 30, 2026, with revenue of $138.7 million, an increase of 70% over the prior year period. The company produced approximately 1.5 million ounces of silver, 2,536 ounces of gold, or approximately 1.7 million ounces of silver equivalent during the quarter. Net income attributable to equity shareholders was $59.4 million, or $0.27 per share. Cash flow from operating activities was $61.7 million, up $13.4 million compared to Q1 Fiscal 2026. The company spent and capitalized $22.3 million on exploration, development, and equipment and facilities at the China operations, $12.9 million at the Ecuador operations mainly for the development and construction of the El Domo mine, and $2.6 million for Chaarat ZAAV mine construction. Silvercorp ended the period with cash and cash equivalents and short-term investments of $387.1 million, after $37.7 million capital expenditures on development and construction, and a $60.0 million payment to close the acquisition of Chaarat ZAAV. Starting mid June, the company voluntarily suspended operations in China to conduct comprehensive self-reviews and complete the 'Six Major Safety Systems' underground upgrades in full compliance with new Chinese government regulations.

Avino Silver & Gold Mines Ltd. (TSX/NYSE: ASM)

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Americas Gold and Silver Corporation Announces Second Quarter Production

(TSX: USA) Americas Gold and Silver Corporation announced consolidated silver production of 665,000 ounces for the second quarter of 2026. The Company sold 624,000 ounces of silver during the quarter, with consolidated lead production at 2.3 million pounds, copper production at 850,000 pounds, and antimony production at 97,000 pounds. The unaudited consolidated cash balance as at June 30, 2026 was US$89 million. The No. 3 Shaft upgrades at the Galena Complex increased total hoisting capacity by approximately 150% and skipping payloads by 40%. During the second quarter, the Company eliminated over US$85 million in variable future debt obligations. The company projects full-year 2026 silver guidance of between 3.2 to 3.6 million ounces at all-in sustaining costs of US$30-US$35 per ounce, with production weighted to the second half of the year and associated lower costs.

Silver Acadia Reports Additional High-Grade Silver-Gold Results and Completed a Geological Study for Future Drill Targets

(CSE: SLA) Silver Acadia Exploration Inc. announced additional high-grade assay results from the Phase 1 drill program at the Hachey Zone on its flagship Nicholas-Denys Project. The company reported assay highlights including 0.95 m @ 1,210.1 g/t Ag, 4.6 g/t Au, 4.82% Zn and 5.38% Pb (0.95 m @ 1,426.9 g/t AgEq) in hole ND26-007A, and 3.85 m @ 71.4 g/t Ag, 0.2 g/t Au, 2.24% Zn and 0.91% Pb in hole ND26-009. The structural study by Terrane Geoscience Inc. identified a mineralized corridor extending approximately 3 kilometres, with multiple connected zones grading over 100 g/t Ag, and confirmed that the principal silver-gold-zinc mineralization is structurally controlled. The company controls more than 250 km² of prospective mineral claims in New Brunswick, Canada, and the drilling campaign at the Hachey Zone commenced in January 2026. The company projects that additional drilling and geological work are required to confirm the continuity and extent of the mineralized corridor and to better understand and target higher-grade gold mineralization across the Hachey system. The study also identifies a potential third and younger gold-bearing mineralization event that may overprint the two earlier silver-rich systems. All assay values are uncut, and intervals reflect drilled intercept lengths; true widths have not been determined as the mineralized body remains open in all directions.

Sunrise Resources: New Copper-Silver-Gold Project, Nevada

(LSE: SRES) Sunrise Resources Plc announced it has established a new copper-silver-gold project in Nevada, USA, named the Lake Copper-Silver-Gold Project, after securing a lease & option to purchase agreement over a mining claim and staking a further ten adjacent mining claims. Drill intersections include 50m grading 0.73% copper, 31g/t silver and 0.2g/t gold from surface, with company surface samples assaying up to 198g/t silver, 0.13% copper and 0.3g/t gold. The project is located at the south-west end of the Humboldt Range, 98km east-northeast of Reno, with access from Interstate Highway I-80 and Highway 95. The lease/option agreement includes a 7-year term (extendable to 21 years), a nominal payment of US$100 on signing, annual payments starting at US$5,000 and rising to $20,000, a 2% NSR royalty (buyable for US$500,000), and an option to purchase the claim for $150,000. Fourteen shallow holes (mainly <100m deep, max 150m) were drilled in the claim area by Utah International in the 1980s, with significant intersections including hole MH-4. The company is targeting an intrusion related copper-precious metals deposit and plans next steps including geophysical surveying and follow up drilling as resources allow. Management states that the path forward for this project is clear with the next steps already defined.

Orestone Advances Exploration at Tom East and Kelly Gold Zones on the Francisca Gold Silver Property in Salta Province Argentina

(TSXV: ORS) Orestone Mining Corp. announced that follow-up exploration is underway at the recently discovered Tom East and Kelly gold zones along the Francisca Gold Trend. The Francisca Gold-Silver Project covers 23 square kilometres and is located in Salta Province, northwestern Argentina, approximately 80 kilometres northwest of the city of Salta. The Francisca Gold Trend now covers a northwest strike length of 1500 metres, with a 1700 metre long by 500 to 700 meter wide induced polarization (IP) chargeability anomaly of 7.9 mV/V. During the recent Phase I exploration program, hand trench sampling at Tom East yielded 4.45 g/t gold over 21 metres in Trench 6B. At the Kelly Gold Zone, mapping and sampling defined a 50 metre wide quartz-limonite vein stockwork zone grading 0.37 g/t gold and 2.15 g/t silver. The Captain Gold-Copper Project in British Columbia, Canada is 100 percent owned by the company and is permitted for 79 drill locations. The company projects that its near-term objective on the Francisca Gold Project is to define an oxide gold deposit mineable by open pit methods.

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