Silver Surges 20% to $70/oz Amid US Treasury Bond Buybacks

Silver prices jumped 20% in August 2026 to touch $70/oz, driven by expanded US Treasury bond buybacks. This move amplified gains across Mexico-exposed producers, including Fresnillo, First Majestic Silver, and Avino Silver.

The rally coincides with a sixth consecutive year of global silver deficit, reinforcing Mexico's position as the world's largest producer amid rising industrial demand from solar, EV, and AI infrastructure. The surge has already pushed silver past several banks' full-year average forecasts, even as producers' share prices moved faster than the metal itself.

Mining equities amplified the gains well beyond the metal itself. Hecla Mining led the sector with a 47% August gain, more than double silver's own advance. Fresnillo nearly tripled first-half profit despite falling Mexican output, while First Majestic raised its 2026 guidance on record throughput at its Coahuila and Sonora mines.