Early investments in metals mining have a history of delivering strong yields, and one emerging mining company is maximizing the vast potential of Bolivia to bring a jolt of supply to a world hungry for silver.
Global demand for silver is surging and shows no sign of easing. However, as the silver market is in its sixth year of a structural deficit between supply and demand. The perfect storm of high demand, scarce supply, and underdeveloped fields is driving silver to record-high price ranges, reaching $81 by mid-March 2026.
Silver is indispensable to the global electronics, transportation, and sustainability sectors, according to the Silver Institute. Silver powers up cellphones and tablets, converts sunlight to energy in solar panels, helps keep data centers cool, and puts electronic vehicles on the road.
“Silver does everything from the greenification of the globe to artificial intelligence and data centers,” Silver Institute President and CEO Michael DiRenzo said in the podcast. “There’s just not enough silver to meet demand right now.”
The podcast took a deep dive into mining development, the dwindling life of heritage silver mines, and the new players ripe for investment as they prepare for production that helps meet demand.
Ground-floor opportunities
As historical data and the respected Lassonde Value Curve show, early shareholders in “junior” mining companies – those pursuing early-stage due diligence – get to buy low before watching values rise steeply when the initial exploration, development, and feasibility phases transform into construction and production.
New Pacific Metals (AMEX:NEWP), Canadian owner of two of the world’s largest undeveloped open pitable silver projects, is among those stepping into the breach as a major future supplier.
Currently, New Pacific Metals’ two major precious metal assets in Bolivia are in the technical work, development, and permitting phase, creating opportunities for strong value creation when production drives share prices higher.
In this atmosphere, Bolivia is bullish on silver. The nation of 12.6 million people in west-central South America has been a bulwark of silver development since the 16th century. Today, with three large-scale silver mines in operation, Bolivia is the world’s fourth-largest silver producing country, outputting 42 million ounces in 2023 and 2024.
Recognizing the job creation and economic benefits of mining, Bolivia’s newly elected government encourages foreign investment and is smoothing the way for responsible permitting and contracting. Low-cost power is available through stable connections to the electrical grid, and roads are getting upgrades for all-season access and efficient logistics.
New Pacific Metals is capitalizing on the rich deposits of its Silver Sand and Carangas projects. Silver Sand, in Bolivia’s growing Potosi region, has the potential to become one of the world’s largest silver mines, yielding around 12 million ounces of silver a year.
The Carangas silver-gold project in Oruro strengthens New Pacific’s portfolio through scale, robust economics, and regional exploration potential. Carangas offers output potential of about 6.5 million ounces annually, plus significant possibilities for growth amid a large ore body.
Combined, the potential annual silver output from Silver Sand and Carangas could equal, or exceed, that of many established global producers.
“Nineteen million ounces of silver coming to the market would be great, with respect to meeting this burgeoning demand,” said DiRenzo.
In 2026, New Pacific Metals is aligned to meet major objectives toward the goals of full permitting by early 2028. Both projects combine government engagement with strong local community partnerships to advance the environmental license.
“One of the most important things that mining companies take really seriously is sustainability in the development and maintenance of that community,” DiRenzo noted.
New Pacific’s major shareholders include two major players in global metals – Silvercorp, a 28 percent owner with additional assets in China, Ecuador, and Kyrgyzstan, and Pan American Silver, a longtime Bolivian producer with 12 percent ownership. Their skin in the game demonstrates confidence and reinforces the projects with additional strategic and technical backing.
Once New Pacific achieves permitting, an array of financing options are expected to deliver strong value to shareholders. As DiRenzo noted, many mining companies have joined the Silver Institute as juniors, “and they’re thriving now.”
“I anticipate the same case will be with New Pacific,” he said.
New Pacific Metals is headquartered in Vancouver, British Columbia. Its shares trade on the Toronto Stock Exchange under the symbol “NUAG” and on the NYSE American under “NEWP”.
For more on the demand driving up the value of silver-mining investments, listen to the Silver Institute “Talking Silver” podcast episode, “Meeting Silver’s Demand.”