Global markets today: Shares of global mining firms saw a sharp rally up to 16% on Monday silver prices soared to a record high.
Japan's Toho Zinc stock price was among the top gainers, was up 15.81% on Monday on Tokyo Stock Exchange. Meanwhile, Australia's mining companies Sun Silver and Silver Mines stock gained up to 19%.
On the other hand, China's Hunan Silver stock rose by 10% daily limit in Shenzhen.
“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,” Kazuhiro Sasaki, head of research at Phillip Securities Japan Ltd, was quoted as saying by Bloomberg.
Shares of mining firms across Asia-Pacific, from China to Australia, have rallied sharply as precious metal prices such as gold and platinum reached record highs.
Australia-based precious metals producer Genesis Minerals Ltd. has surged 199% so far this year, while China’s Zijin Mining Group Co. is up 152% in Hong Kong. Meanwhile, Indonesia’s gold and silver miner Aneka Tambang Tbk. has gained 122% year to date.
Shares of Hong Kong's Jiangxi Copper also surged up to 13% to hit a record high, while CMOC Group’s stock also climbed as much as 6%, reaching a new peak.
Back home, mining companies like Hindustan Zinc, Vedanta, NMDC share price were trading down up to 3% on Monday, December 29.
What's behind the rally in Asian mining stocks?
Silver surged to a record high of $84 an ounce on Monday but saw sharp volatility, dropping as much as 5.1% from the prior session’s close before rebounding again.
The metal is on track for a sixth straight day of gains, supported by a weaker dollar, rising geopolitical tensions, speculative activity, and a structural mismatch between supply and demand.
“Silver continues to dominate the precious-metals space, significantly outperforming gold in this cycle. COMEX Silver recently posted fresh all-time highs near $82.67 and is currently trading around the $80.40 per ounce region. The rally is being driven by a powerful combination of safe-haven demand, accelerating industrial usage, and persistent structural supply deficits. The impulsive bullish structure remains intact, with corrections staying brief and contained. Upside potential now points toward the $84–$87 zone, while strong support lies between $75 and $72. Silver is on track for one of its strongest annual performances in decades,” said Ponmudi R, CEO of Enrich Money.
(With inputs from Bloomberg)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
