Silver has had a tremendous run with the spot price of silver increasing by +117% over the last year and +6% in 2026. But silver has had a -41% decline since it hit its high on 1/28/26.

Silver miners have had a volatile ride as well, although not nearly as dramatic as the commodity itself. The Global X Silver Miners ETF (SIL US) is up +20% over the last year, +19% year-to-date and down -15% since its 1/28/26 high.

While silver miner short sellers were very active during this rally with $694 million of new short selling in 2025, there has been a reversal of conviction recently with $192 million of short covering so far in 2026.

Silver miner shorts are still down -$263 million in year-to-date mark-to-market losses, even with today’s +$194 million in mark-to-market gains as the sector had a broad sell-off in every company in the sub-industry.

Silver miner short interest is at recent historical high. Short interest for the sub-industry is $2.4 billion; the first time we have seen total short interest top the $1 billion level.

Silver miner short interest is $2.35 billion, an increase of $248 million in 2026. The increase was made up of a $440 million increase in the mark-to-market value of the shares shorted, offset by $192 million of short covering. Silver miner shorts were getting squeezed and began trimming their exposure in the face of accumulated mark-to-market losses.

The most short covering was in First Majestic Silver Corp (AG US & AG CN) and Discovery Silver Corp (DSVSF US & DSV CN) while Silvercorp Metals Inc (SVM US & SVM CN) had the largest increase in short selling in 2026.

Silver miner short sellers have not had a good run during this silver rally. Shorts were down -$458 million in 2025 year-to-date mark-to-market losses, -19.11% for the year and are down -$263 million in 2026 year-todate mark-to-market losses, -10.99%.

If silver resumes its recent surge, we should see more short covering in the silver miner sub-industry adding to buy side upside pressure on these stocks. While their returns may not match the silver commodity itself the sub-industry is in the top 10% best performing sub-industries in 2026.

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