Silver Market Caught Between Profits and Rising Yields
The silver market is experiencing a paradoxical situation, with some producers reporting record profits while others are struggling due to rising real yields.
On one hand, companies like First Majestic Silver are benefiting from elevated bullion prices, as seen in their second-quarter results. Revenue climbed 57 percent year over year to $415.5 million, with net income reaching $109.4 million, or $0.22 per share. Free cash flow came in at $194.6 million, while liquidity surged 34 percent since the start of the year to a record $1.2527 billion.
However, the futures market is becoming increasingly sensitive to US monetary policy, particularly after the Federal Reserve's decision to keep interest rates steady but with three members dissenting in favor of an immediate quarter-point hike.
The result is a metal caught between a robust structural narrative and the cold mechanics of rising real yields. The global deficit for 2026 is pegged at 46.3 million ounces, marking a sixth consecutive year in which mine production fails to meet demand.