Top ASX Silver Stocks to Watch in 2025’s Emerging Sector

Why Is Silver Underperforming Gold in the Current Market?

Silver prices have lagged significantly behind gold's record-breaking performance in 2025, creating both confusion and opportunity in the precious metals market. While gold continues to set new highs, silver remains well below its 2011 peak of US$50/oz, currently trading around US$32.50/oz. This divergence has puzzled many investors, especially considering silver's dual role as both a precious and industrial metal.

The Gold-Silver Ratio Reaches Extreme Levels

The gold-to-silver ratio has surged to approximately 100:1, meaning it takes 100 ounces of silver to purchase one ounce of gold. This represents an extraordinarily high level by historical standards:

• Current ratio: ~100:1 (April 2025)
• Historical extreme threshold: 80:1
• Recent peak: 105:1 (April 2025)

This extreme ratio suggests silver may be significantly undervalued relative to gold, potentially setting the stage for a substantial price correction. For perspective, if silver were to realign with gold at the historical threshold of 80:1, its price would need to rise to approximately US$50/oz based on gold's current levels—a significant upside from today's prices.

John Ciampaglia, CEO of Sprott Asset Management, notes that "silver's identity crisis between monetary and industrial metal creates these periodic disconnections from gold, particularly during periods of economic uncertainty."

What's Driving Silver's Price Divergence from Gold?

Silver's Dual Identity: Monetary vs. Industrial Metal

Silver functions as both a precious metal (like gold) and an industrial metal (like copper), creating a complex price dynamic that responds to different market dynamics insights. When economic uncertainty rises, silver tends to trade more like copper than gold, with approximately 50% of silver demand coming from industrial applications.

Furthermore, unlike gold, silver lacks significant central bank buying (over 1,000 tonnes of gold purchased annually by central banks since 2022). Additionally, gold ETFs have attracted approximately US$25 billion in 2025, while silver ETFs have received only US$500 million.

"Central banks don't buy silver—this is a critical difference between the two metals that's been particularly impactful in recent years," explains Maria Smirnova, Chief Investment Officer at Sprott Asset Management.

The Growing Supply-Demand Imbalance

Despite price underperformance, silver's fundamental supply-demand picture appears increasingly bullish:

• Fourth Consecutive Annual Deficit: Nearly 150 million ounces in 2024
• Significant Market Imbalance: 10-20% annual supply shortfall from total production of 1 billion ounces
• Declining Production: Loss of approximately 50 million ounces of annual production over the past decade
• Industry Challenges: Falling reserve grades (approximately 30% lower than a decade ago), declining production grades, and limited exploration investment

This persistent deficit has been largely absorbed by above-ground inventories, but analysts suggest these stockpiles are diminishing rapidly. The combination of underinvestment in new projects and increasing industrial demand from sectors like solar panels (which consume approximately 60 million ounces annually) points toward continued market tightness.

Which ASX Companies Offer Silver Exposure?

Current Producers and Near-Term Developers

Adriatic Metals (ASX:ADT)

• Status: Currently producing at Vares operation in Bosnia and Herzegovina
• Recent Performance: 1.4 million ounces silver equivalent in March quarter
• Financial Milestone: Recently achieved positive cash flow
• Commercial Production: Declaration expected imminently
• Revenue Mix: Approximately 40% from silver, with remainder from lead, zinc and gold

Broken Hill Mines (via Coolabah Metals ASX:CBH)

• Acquisition: Rasp mine and Pinnacles project in Broken Hill
• Revenue Profile: Over 50% expected from silver
• Capital Raising: Up to $20 million via reverse takeover
• Historical Significance: Operating in Australia's iconic silver-lead-zinc district
• Grade Potential: Historical zones with silver grades exceeding 2,000 g/t

Boab Metals (ASX:BML)

• Strategic Acquisition: Purchased Sandfire Resources' DeGrussa plant for $10 million
• Project Economics: Potential capital cost reduction from $264 million to approximately $128 million
• Timeline: Final investment decision expected later in 2025
• Project: Sorby Hills lead-silver project in Western Australia
• Production Potential: 4-5 million ounces annually at AISC below US$18/oz

Advanced Development Projects

Silver Mines (ASX:SVL)

• Asset: Bowdens project in New South Wales
• Scale: Australia's largest undeveloped silver project with 72 million ounce reserve
• Production Potential: 4.2 million ounces annually at 83g/t in first decade
• Economics: AISC below US$23/oz for initial 10 years of 16.5-year mine life
• Capital Requirement: Estimated at $331 million
• Permitting Status: Final approvals delayed due to environmental review process

Maronan Metals (ASX:MMA)

• Resource: 32.1 million tonnes at 6.1% lead and 107g/t silver
• Contained Metal: 1.96 million tonnes lead and 110.6 million ounces silver
• Upcoming Catalysts: Resource update and scoping study expected shortly
• Location: Queensland, Australia
• Economic Potential: Preliminary analysis suggests AISC competitive with global peers at US$22-25/oz

How Large Are the Resources of ASX Silver Explorers?

Resource-Stage Companies

Sun Silver (ASX:SS1)

• Resource Size: 480 million ounces silver equivalent at 68.29g/t AgEq
• Location: Maverick Springs project, Nevada, USA
• Current Activity: 2025 drilling program underway
• Objectives: Resource expansion and metallurgical sample collection
• Recovery Rates: Current metallurgical testing indicates approximately 85% silver recovery

Andean Silver (ASX:ASL)

• Resource: 9.8 million tonnes at 353g/t AgEq for 111 million ounces AgEq
• Infrastructure Advantage: US$150 million of existing infrastructure
• Project: Cerro Bayo, Chile
• Exploration: Three drill rigs currently operating
• Recent Discoveries: High-grade zones including intersections of 1,200 g/t over 15 meters

Unico Silver (ASX:USL)

• Cerro Leon Project: 16.47 million tonnes at 172g/t AgEq (91.3 million ounces AgEq)
• Joaquin Project: Historical resource of 16.7 million tonnes at 136g/t AgEq (73.4 million ounces AgEq)
• Current Activity: Maiden drilling program at Joaquin underway
• Location: Argentina
• Local Challenges: Navigating complex permitting environment and community consultation processes

Mithril Silver and Gold (ASX:MTH)

• Current Resource: 2.4 million tonnes at 4.8g/t gold and 141g/t silver
• Contained Metal: 373,000 ounces gold and 10.9 million ounces silver
• Growth Target: Aiming to double resource in 2025 update
• Exploration: Two rigs operating at Copalquin project, Mexico
• Historical Mining: Area previously produced ore grading over 1,000 g/t silver

Argent Minerals (ASX:ARD)

• Resource: 63.7 million tonnes at 69.75g/t AgEq (142.8 million ounces AgEq)
• Project: Kempfield, New South Wales
• Recent Activity: Drilling program completed in March quarter
• Results: Successfully extended mineralization beyond existing resource
• Metallurgical Advances: Recent testing improved recovery rates by approximately 15%

What Early-Stage Silver Opportunities Exist on the ASX?

Emerging Explorers

Errawarra Resources (ASX:ERW)

• Recent Acquisition: 70% of Elizabeth Hill silver project in WA's Pilbara region
• Historical Production: 1.2 million ounces silver at exceptional 2,194g/t grade
• Corporate Update: Planning name change to West Coast Silver
• Funding: Recently raised $3 million
• Current Activity: Field work underway with drilling planned for Q2 2025
• Geological Uniqueness: Deposit features native silver nuggets—extremely rare globally

Iltani Resources

• Project: Orient silver-indium project, Queensland
• Exploration Target: 99-135 million tonnes at 61-73g/t AgEq
• High-Grade Potential: 32-42 million tonnes at 110-124g/t AgEq
• Status: Drilling resumed following wet season
• Goal: Establishing maiden resource
• Additional Value: Indium content potentially adds 15-20% to overall project economics

What Should Investors Consider When Evaluating Silver Stocks?

Key Investment Considerations

• Production Timeline: Companies closer to production may benefit sooner from potential price increases, with producers like Adriatic offering immediate exposure while developers face 3-5 year horizons
• Resource Grade: Higher grades generally translate to better economics and resilience in price downturns, with deposits above 100 g/t silver (like Maronan's 107 g/t) offering superior margins
• Jurisdiction Risk: Political stability and mining regulations vary significantly across regions, with Australian projects generally facing fewer sovereign risks than Latin American counterparts
• Project Economics: Capital intensity, operating costs, and payback periods differ substantially between projects, with brownfield developments typically offering superior returns
• Management Experience: Track record in successfully developing similar projects is critical for navigating technical challenges and maintaining development schedules
• Balance Sheet Strength: Ability to fund development without excessive dilution, particularly important given silver's price volatility

Market Outlook Factors

• Industrial Demand Growth: Continued expansion in electronics, solar panels, and medical applications, with solar module production alone projected to consume an additional 30 million ounces annually by 2030
• Investment Demand Potential: Possible catch-up trade if monetary aspects gain prominence, particularly if inflation concerns persist
• Supply Constraints: Limited new projects in development pipeline globally, with major producers facing average reserve life declines of 25% over the past decade
• Persistent Deficits: Market imbalance expected to continue for foreseeable future, with cumulative deficit potentially reaching 500 million ounces by 2028

For investors looking to develop long-term investing strategies, understanding gold market analysis can provide valuable context when evaluating the stocks to watch in the ASX's emerging silver sector. Additionally, those interested in gold ETF strategies may find similar vehicles useful for silver exposure.

Frequently Asked Questions About Silver Investments

Why has silver underperformed gold in 2025?

Silver is currently trading more as an industrial metal than a monetary metal, with economic uncertainty affecting industrial demand expectations. Additionally, silver lacks the central bank buying that has significantly boosted gold, with central banks purchasing over 1,000 tonnes of gold annually since 2022.

What is the significance of the gold-to-silver ratio?

The ratio indicates relative valuation between the two metals. At current levels around 100:1, silver appears historically undervalued compared to gold, potentially signaling a future correction. The historical average over the past century has been closer to 60:1, suggesting significant upside potential for silver.

Which ASX silver company has the largest resource?

Sun Silver (ASX:SS1) currently holds the largest silver resource on the ASX with 480 million ounces of silver equivalent at its Maverick Springs project in Nevada, followed by Argent Minerals (142.8 million ounces AgEq) and Andean Silver (111 million ounces AgEq).

Are there any pure silver producers on the ASX?

Adriatic Metals (ASX:ADT) is currently the only producing silver company, with Broken Hill Mines (via Coolabah Metals) and Boab Metals approaching production status. Most silver exposure on the ASX comes from polymetallic deposits containing lead, zinc, and gold alongside silver.

What factors could trigger a silver price breakout?

A significant increase in investment demand, recognition of persistent supply deficits, or a shift in perception toward silver's monetary aspects could potentially trigger a price breakout. Additionally, accelerated adoption of green energy technologies, which require substantial silver inputs, could drive industrial demand beyond current forecasts.

According to StockHead's analysis, silver stocks currently offer exceptional value for investors interested in precious metals exposure, with many ASX companies trading at significant discounts to their net asset values. For those wanting to explore specific investment options, MarketIndex's guide to ASX silver stocks provides a comprehensive overview of the top explorers, developers, and producers in this emerging sector.

Further Exploration:
Readers interested in learning more about silver market dynamics and investment opportunities can also explore related educational content available through precious metals research publications and industry analysis from organizations like the Silver Institute.

Table: ASX Silver Companies by Development Stage

Those interested in diversifying their portfolio beyond silver might also find value in exploring the broader mining stocks guide to understand how these investments fit within an overall resource sector strategy.

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