Why Silver’s Surge Could Ignite Mining Stocks Next

Published: 02-10-2025, 10:05 am

Silver vs. Miners: A Strange Divergence 

Silver today looks extremely undervalued — both against inflation and compared to gold. Yet mining stocks, which typically amplify moves in metals, have lagged badly since the mid-2000s. The HUI index (a benchmark for mining companies) has been in a long decline relative to gold, though Lundin believes it may now be breaking that downtrend. 

If miners start to “catch up” to silver’s rally, the leverage could be enormous. History shows that when this gap closes, the moves can be fast and violent — rewarding those positioned early. 

Two Core Reasons to Own Gold 

As Mike reminded viewers, gold has two essential roles: 

1. Insurance — protecting purchasing power against currency decay. Unlike fire or flood insurance, this is a 100% certainty: all fiat currencies lose value over time. 

2. Investment — during rare moments in history, gold isn’t just protection but also the best-performing asset class. We may be entering one of those moments now. 

Silver acts as “gold with leverage,” and mining stocks offer even greater speculative upside — if chosen wisely. 

The Macro Backdrop: Rocket Fuel for Metals 

Debt burdens, negative real interest rates, and relentless currency depreciation create the perfect storm for precious metals. As Lundin noted, central banks can’t allow rates to rise above inflation without collapsing government budgets. That reality means negative real rates are here to stay — historically, rocket fuel for gold and silver. 

Asia has been leading this bull market with heavy central bank and retail demand, while Western investors are only beginning to re-enter. That mismatch creates a unique setup: a confirmed metals bull market with undervalued “high-octane” vehicles like silver and miners still lagging. 

Picking the Right Mining Stocks 

Maloney emphasized that mining stocks require professional insight. You’re not just betting on ore in the ground — you’re investing in the team, the jurisdiction, the balance sheet, and the timing. That’s why newsletters and research from seasoned analysts like Lundin are so valuable: they can help identify winners before the crowd piles in. 

A Generational Wealth Opportunity 

Both Maloney and Lundin see this as a rare, generational moment — similar to the early 2000s, when gold and silver were bombed out at multi-decade lows. Today, gold has already broken higher, removing much of the risk, while silver and miners remain deeply undervalued by almost every metric. 

If history is any guide, the catch-up phase could produce rapid, outsized gains for silver investors. 

👉 Watch the full interview with Mike Maloney and Brien Lundin here. 

Investing in Physical Metals Made Easy

People Also Ask 

Why are silver prices rising while mining stocks lag? 

Silver has surged relative to inflation and gold, but mining stocks have trailed since 2007. This divergence may signal an upcoming breakout, as miners historically play “catch up” in bull markets. Watch Mike Maloney’s full breakdown here. 

What are the two main reasons to own gold? 

Mike Maloney explains that gold serves as both insurance (protection against currency depreciation) and as an investment during rare periods when it delivers outsized gains. Today’s macro environment suggests we may be entering one of those moments. 

How do negative real interest rates impact gold and silver? 

When interest rates are kept below inflation, bondholders lose purchasing power — a setup that historically drives strong bull markets in precious metals. Maloney and Lundin agree this dynamic is fueling today’s rally. 

Why are mining stocks riskier than physical gold and silver? 

Mining stocks can offer huge leverage but also carry risks tied to management, jurisdiction, and financial strength. That’s why Maloney stresses the importance of professional research before investing in them. 

Is now a good time to invest in silver and mining stocks? 

Both Maloney and Lundin believe this is a “generational opportunity.” Gold has already confirmed a bull market, removing much downside risk, while silver and miners remain undervalued — potentially setting up for explosive catch-up gains.