Gold and silver are falling, and it’s all because trading got busy and the mood changed. After a big run, traders started pricing in sharper interest rate prospects, and the US dollar was no longer a one-way headwind. That mix can produce precious metals quickly because it doesn’t pay interest, so money rotates when returns look attractive. Add to that forced selling after leverage and margin calls, and the decline can seem scarier than the long-term story.
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That volatility is the reason TSX investors should focus on the companies, not the candles. A solid miner can continue to generate money, replace ounces, and improve its asset base even as the metal tape sours. If you want one name to be watched while gold and silver cool, Pan American Silver (TSX:PAAS) belongs on the shortlist.
Pan American manages a portfolio of precious metals across America. It produces both silver and gold, which helps balance the results when one metal is left behind. The company’s biggest headline of the past year was its acquisition of MAG Silver in September 2025. That deal brought a 44% stake in the Juanicipio mine in Zacatecas, Mexico, operated by Fresnillo. Juanicipio adds scale and strong metrics, strengthening Pan American’s silver leverage as investors return to this theme. It also adds the complexity of a joint venture so execution still matters.
The next major update came in January 2026, when Pan American said it had achieved 2025 production guidance and issued 2026 guidance. It reported attributable silver production of 22.8 million ounces for 2025, including a record 7.3 million ounces in the fourth quarter. It also reported attributable gold production of 742.2 thousand ounces for the year, including 197.8 thousand ounces in the fourth quarter. Meeting targets is important when prices fluctuate, because volume keeps the engine running.
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Now zoom in on the most recently reported earnings for a reality check. In the third quarter of 2025, Pan American posted record attributable revenues of $884.4 million and net income of $169.2 million, or $0.45 per share. These results include revenue tied to Juanicipio and other one-time items, but the headlines still emphasize the point: when realized metal prices work together, cash flow generation can rise quickly.
Cost determines whether a silver stock can survive a downturn without issuing shares. For 2026, management expects all-in servicing costs for the silver segment to be $15.75 to $18.25 per ounce and all-in servicing costs for the gold segment to be $1,700 to $1,850 per ounce. The range reflects costs that increase with metal prices, such as royalties and refining costs.
So why watch while metal slides? Often the market panic sells the entire group, even as the better operators among them continue to improve. Pan American expects attributable production to increase in 2026, with Juanicipio contributing for a full year and certain mines located in higher grade zones. Commodity stock valuations will always feel shaky because profits fluctuate with prices. After the rise and pullback, consider each individual multiple as a moving target and focus on what remains stable.
In short
In short, Pan American could be a buy for investors who want exposure to precious metals but prefer a large-scale operator with diversified mines and clear guidance through 2026. It could also be a pass for anyone who needs a smooth ride, as this silver stock could swing more than just precious metal as fears mount. If you buy it, keep the position size fair.
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