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Silver mining stocks have recorded their best weekly performance in over four years, with some exchange-traded funds (ETFs) delivering their highest gains since inception.

A perfect storm of rising gold prices, expectations of a Federal Reserve interest rate cut, and a condition of structural global silver supply shortage has propelled prices above $30 per ounce, driving an almost 10% surge this week alone.

Several silver-focused ETFs have outperformed the broader market, benefiting from the rapid rise in prices. Here's a breakdown of their weekly performance as of 3 p.m. ET on Friday:

ETF Performance (5D) Best Week Since iShares MSCI Global Silver Miners Fund SLVP +16.8% Early April 2020 Global X Silver Miners ETF SIL +16.7% Fund Inception (2010) Themes Silver Miners ETF AGMI +13.0% Fund Inception (2024)

Worsening Silver Shortage

The silver market’s supply and demand dynamics are only tightening, pushing prices higher. A Silver Institute survey highlighted a growing supply deficit, with demand expected to outstrip supply by 265 million ounces (oz.) this year, marking the steepest shortage since 2020.

In 2024, industrial demand for the metal is forecasted to rise to 710.9 million oz., up from 654 million oz. in 2023, driven largely by increased use in photovoltaic cells for solar energy production.

This demand spike is colliding with a flat supply, creating a structural deficit that's driving prices upward.

Fed Rate Cuts Could Fuel Further Gains

Investor sentiment around silver and other precious metals is being buoyed by expectations of a near-term Federal Reserve interest rate cut.

With inflation data aligning with a broader disinflationary trend, market odds currently point to a 49% chance of a 50-basis-point cut during next week's Fed meeting, with the remaining expectations on a 25-basis-point cut, as per CME FedWatch.

Falling Treasury yields and a weaker dollar have further supported precious metals.

Gold prices have soared to fresh all-time highs, surpassing $2,560/oz., with silver rallying alongside, notching five consecutive positive trading days this week—its longest winning streak since July.

Top-Performing Miners

Silver mining stocks have outpaced the metal itself, with some posting massive gains. Here are the five top-performing miners this week:

Name Price Chg. % (5D) Coeur Mining, Inc. CDE 37.22% Gatos Silver, Inc. GATO 33.87% Hycroft Mining Holding Corporation HYMC 28.16% Hecla Mining Company HL 25.05% AYA Gold & Silver Inc. AYASF 22.94%

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