Global mining shares experienced a powerful surge on Monday, with some stocks skyrocketing as much as 16%, propelled by silver prices climbing to an unprecedented record high. This rally highlighted a significant shift in investor focus towards metals crucial for technological advancement.
Asian Mining Giants Lead the Charge
The momentum was most visible across the Asia-Pacific region. In Japan, shares of Toho Zinc soared dramatically, closing 15.81% higher on the Tokyo Stock Exchange. Australian mining firms witnessed even sharper gains; Sun Silver and Silver Mines saw their stock prices jump up to 19%. In China, Hunan Silver hit its daily upward limit of 10% on the Shenzhen exchange.
This bullish trend wasn't confined to silver-focused companies. Broader precious metal miners also reaped benefits from record prices in gold and platinum. Australia's Genesis Minerals Ltd. has surged an astonishing 199% year-to-date. Similarly, China's Zijin Mining Group Co. is up 152% in Hong Kong, and Indonesia's Aneka Tambang Tbk. has gained 122% since the start of the year. Hong Kong's Jiangxi Copper surged up to 13% to a record high, while CMOC Group's stock climbed 6% to a new peak.
The Driving Force: AI, Supply Deficits, and Safe-Haven Demand
Analysts point to a powerful convergence of factors fueling this rally. Silver reached a historic peak of $84 per ounce on Monday, although it experienced sharp volatility, briefly dropping 5.1% before rebounding. The metal is poised for a sixth consecutive day of gains.
Kazuhiro Sasaki, head of research at Phillip Securities Japan Ltd., explained a key driver: "Silver is a key component needed for data centers and AI, and the market is waking up to that demand. Many investors are shifting funds from chips and other AI-related stocks to metals like silver, which look more undervalued."
Ponmudi R, CEO of Enrich Money, elaborated further, stating, "Silver continues to dominate the precious-metals space... The rally is being driven by a powerful combination of safe-haven demand, accelerating industrial usage, and persistent structural supply deficits." He noted that COMEX Silver recently posted fresh all-time highs and the bullish structure remains intact, with upside potential pointing toward the $84–$87 zone.
Contrasting Performance in Indian Markets
While the rally swept through major Asian markets, the picture was different back in India. On Monday, shares of prominent domestic mining companies like Hindustan Zinc, Vedanta, and NMDC were trading down by up to 3%. This divergence underscores the varied market dynamics and investor sentiment affecting regional players despite the global surge in metal prices.
The overall surge is supported by a weaker US dollar, escalating geopolitical tensions, speculative trading activity, and a fundamental structural mismatch between supply and demand for the white metal.
Disclaimer: This story is for informational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
