Silver Demand Surge: Solar and AI Hardware Drive Industrial Attributes
On July 28, 2026, spot silver broke above $35/oz, hitting a near-decade high. The main drivers are twofold: First, global solar photovoltaic installations continued to exceed expectations, with new installations up 32% YoY in H1 2026, driving silver paste consumption; second, AI servers and data centers have significantly increased demand for silver in high-frequency connectors and thermal management materials. According to the latest Silver Institute report, silver industrial demand is expected to reach 680 million ounces in 2026, with the supply deficit widening to 120 million ounces.
Central Bank Gold Buying Momentum Unabated, Gold Price Solidly Supported
Despite the Fed maintaining rates at 4.5%-4.75%, global central banks' gold buying enthusiasm remains undiminished. World Gold Council data shows net central bank gold purchases in H1 2026 reached 483 tons, up 15% YoY. China's central bank increased its holdings for the 18th consecutive month, with gold reserves rising to 2,450 tons; emerging markets like Poland and Singapore also bought heavily. Spot gold oscillates narrowly around $2,420, but the rising cost of carry lays the foundation for medium-term upside.
Asian Miners Benefit: Capacity Release and Cost Optimization
Asian miner stocks represented by Chinese gold-silver ADRs have recently outperformed the broader market. Zijin Mining (ZIJMF) saw Q2 2026 gold production up 18% YoY and silver output up 25%, driven by full production at the Kamoa-Kakula copper mine in DRC and the Pekij copper-gold mine in Serbia. Zhaojin Mining (JINFF) completed gold mine technical upgrades in Gansu and Xinjiang, reducing all-in sustaining costs to below $1,100/oz. Additionally, Korea Zinc (KZNI) and Indonesia's Antam (ANTM) have attracted attention due to their expanded silver by-product capacity.
Valuation Reassessment: From Resource Stocks to Growth Stocks
The market is re-evaluating the valuation framework for precious metals miners. In the past, miners were valued based on resource reserves, but now the market focuses more on production growth and cost reduction capabilities. Taking Zijin Mining as an example, its 2026 forward P/E has been raised from 18x to 25x, due to its mine life extending beyond 20 years and ample cash flow for dividends. Analysts believe that if gold and silver prices remain high, Asian miners could achieve a "Davis Double Play."
Risks and Challenges
Investors should be wary of the possibility of another Fed rate hike, a global recession dragging down industrial demand, and geopolitical risks disrupting mine operations. In addition, some miners face declining ore grades and rising environmental compliance costs.
Conclusion
Under the dual trends of strengthening silver's industrial attributes and central bank gold buying, Asian precious metals miners offer long-term investment value. It is recommended to focus on leading players with clear production growth, good cost control, and reasonable valuations.
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