Pan-American silver rises 11%. Is it still a buy after hitting an all-time high?

Pan American Silver (PAAS) shot up 11% yesterday to close at an all-time high of $48.41 with no company-specific news. However, the rally reflected broader market enthusiasm for precious metals, as silver prices themselves reached a milestone, rising above $61 per troy ounce for the first time ever.

The white metal’s rise has been relentless, surpassing gold, platinum and palladium with a staggering 105% increase by 2025. For PAAS, the momentum is translating into a 139% share gain so far this year, making it one of the hottest names in mining.

As supply constraints tighten and demand increases, there is little indication that this bull run will end any time soon. But now that PAAS is at a record high, is it still an attractive purchase for the long term?

The Silver Wave

Silver’s explosive performance in 2025 comes from a perfect storm of fundamental factors that transformed it from Gold’s overlooked sibling into a powerhouse in its own right. At its heart is a chronic supply shortage: Global mine production is expected to fall 12% from 2020 peaks, to just 820 million ounces this year, according to the World Silver Survey. Recycling efforts cannot keep pace, leaving inventories at their lowest levels in several years.

This scarcity has been exacerbated by the massive influx of ETFs and institutional buying, with demand for investments rising to a record 1.334 billion ounces, accounting for 37% of total consumption.
Silver’s dual appeal – both as a monetary hedge and an essential industry tool – positions it for sustainable gains, far outpacing its precious metal peers.

PAAS is riding the wave

Pan American Silver has masterfully capitalized on this silver supercycle and emerged as one of the top performers in the industry. It is driven by smart diversification and aggressive expansion.

The pivotal 2023 acquisition of Yamana Gold – valued at $4.8 billion – marked a turning point, combining Pan American’s silver dominance with Yamana’s high-grade gold assets in Latin America. The deal immediately expanded its portfolio, adding productive mines such as Cerro Moro and El Penon, while reducing geopolitical risks through a footprint that includes Canada, Mexico, Peru, Bolivia, Argentina and Chile.

While silver remains core (over 60% of production), gold now contributes significantly by hedging against pure volatility and increasing free cash flow – reaching records in recent quarters and financing a 17% dividend increase to $0.14 per share.
Pan American’s M&A appetite shows no signs of abating either. Just last week, it bought 18.75 million units of Galleon Gold in an $11.25 million Canadian private placement, increasing its stake to nearly 30% on a partially diluted basis through warrants and an earlier convertible note.

The move targets Galleon’s promising gold projects in Ontario, in line with Pan American’s strategy to build scalable, low-cost assets. Exploration updates show promising drills at multiple locations, pointing to higher silver production and lower costs following the previous MAG Silver deal.

As peers struggle with capital expenditure overruns, PAAS’s operating efficiencies – combined with silver’s leverage – have delivered unprecedented returns, positioning the company as a key bet on the rally.

In short

At $48 per share, PAAS trades at a price-to-earnings ratio of about 13x (modest versus the average of 15x for silver miners) and yields a 1% dividend, offering value in a frothy market. With expected shortages in silver through 2030 and Pan American’s diversified, acquisition-driven pipeline, this stock remains an elite asset to leverage the long-term bull run in silver and gold.