All that glitters isn't gold, and that's particularly true for Pan American Silver (PAAS 0.89%).
While the Canadian mining company does extract gold, its primary metal is silver. Like gold, silver has jumped to record highs in recent months, reaching $121.62 an ounce in late January, though as of Feb. 28, it was down to a still-lofty $93.66.
Silver isn't merely an investment. It's also a widely used physical resource. It is an excellent conductor of electricity and is used in components for an array of products, including electric vehicles (EVs), batteries, medical supplies, computers, solar panels, and, of course, jewelry.
The metal is also attracting renewed attention from investors who feel the price of gold has become too high but want a safe-haven asset. Pan American has 10 gold and silver mining operations, nine of which are in Central or South America.
Pan American's stock is up more than 30% this year and isn't far from its 52-week high of $69.99. Here are three reasons why it could jump past that price soon.
NYSE: PAAS
Key Data Points
1. It is coming off a record year with momentum
The company reported record revenue and earnings per share (EPS) in 2025. Revenue rose by up 28% $3.6 billion, and earnings per share (EPS) rose 726% to $2.56.
This was due to a combination of increased sales prices for its silver and gold, and Pan American's increased production of silver. The company has raised its dividend for three consecutive quarters, and its current dividend of $0.18 per share is 80% over what it was in the first quarter of 2025.
Image source: Getty Images.
2. Demand for silver isn't abating
The silver market is entering its sixth consecutive year of structural deficit, with a projected shortfall of 67 million to 245 million ounces compared to demand. That's due to the increasing use of the metal in solar energy applications and data centers, along with the U.S. government's move to add silver to its Critical Minerals list. Experts are saying the new normal for silver is around $70 an ounce, and J.P. Morgan forecasts silver to average $81 per ounce for the year, nearly double what it averaged in 2025.
Silver prices are known to be volatile, and past peaks have been followed by sharp declines, so caution is warranted. The most famous silver run-up came in January 1980, when the Hunt brothers bought up a third of the world's supply in an attempt to corner the market, and the metal shot up to $49.95 per ounce, only to plummet after the brothers missed a margin call. Silver also had a brief run-up in 2011 after the U.S. debt ceiling crisis led investors to buy gold and silver as safe-haven assets.
3. Its own silver production is expected to rise
Pan American Silver said it expects to increase its silver production by 14% this year, mostly due to higher output at its high-grade Juanicipio mine in Mexico, which it gained last September when it bought MAG Silver for $2.1 billion. It expects all-in sustaining costs (AISC) of $15.75 to $18.25 per ounce to mine silver this year, and with its realized price of sale possibly being as high as $50 an ounce or more, that will give it a nice profit margin.
Over the last three quarters, the company's average AISC has dropped while the realized price for silver has risen. That trend can't last forever, but if the metal's price remains relatively high, the company will be in a good position to fund growth and provide further shareholder returns. While few analysts covering the company forecast the stock to rise to $70, Pan American's shares have consistently blown past analysts' previous price targets.
