Index Insights: Nasdaq Junior Silver Miners™

Demand: Industrial and Monetary Strength

Silver occupies a unique position as both an industrial input and a store of value. Nearly half of global demand stems from industrial uses, including solar panels, semiconductors, and electronics, while the remainder comes from jewelry and investment. Its dual role allows silver to benefit from both periods of economic expansion and heightened financial uncertainty. Analysts expect global demand to rise alongside accelerating electrification, renewable energy adoption, and data‑center infrastructure growth.

Supply: Structurally Constrained

More than 70% of global silver supply is produced as a byproduct of mining other metals such as copper, lead, and gold. This limits the industryʼs ability to quickly increase production even as prices rise. Meanwhile, project pipelines are thinning as ore grades decline and permitting hurdles increase. New discoveries remain rare, contributing to a long‑term supply imbalance that supports higher prices.

Silver vs. Gold

Silverʼs industrial demand and relative scarcity position it differently from gold. Historically, the gold‑to‑silver ratio has averaged around 60x; more recent levels near or above 100x indicate silver has remained relatively undervalued. The combination of rising silver prices and a declining gold‑to‑silver ratio highlights silverʼs strengthening momentum, supporting the potential for silver to outperform gold over the long term as supply‑demand imbalances persist.

Why Junior Silver Miners

Junior silver miners are smaller, more exploration‑focused companies that historically exhibit greater sensitivity to changes in silver prices. Due to higher operating leverage and earlier‑stage assets, profitability can expand more rapidly during periods of rising silver prices. In addition to price leverage, junior miners offer discovery potential and exposure to project development that larger, more established producers often lack.

At the same time, junior miners can experience higher volatility and company‑specific risk, underscoring the importance of diversified exposure.

Why the Nasdaq Junior Silver Miners™ Index (NMFSM™)

The Nasdaq Junior Silver Miners™ Index is designed to provide targeted, rules‑based exposure to companies engaged in the silver mining industry. Eligible companies must derive a majority of their revenues from silver, have a meaningful share of global silver production, or be principally involved in exploration and development related to new silver supply.

The index applies a theme‑adjusted weighting methodology that incorporates free‑float market capitalization, liquidity, and silver‑revenue exposure, helping align index weights with economic sensitivity to silver prices rather than size alone.

Index Construction Highlights

• Targeted Exposure: Focuses on small and mid‑cap companies tied directly to silver mining production and development

• Theme‑Adjusted Weighting: Incorporates silver‑revenue exposure and liquidity considerations

• Global Universe: Currently includes 59 companies listed across more than 11 global exchanges

• Rules‑Based Discipline: Quarterly rebalancing with semi‑annual reconstitutions

 
The Amplify Junior Silver Miners ETF (SILJ) seeks to track the Nasdaq Junior Silver Miners™ Index.

Nasdaq Global Indexes
Bloomberg
FactSet
https://grreserve.com/learn/silver-industrial-uses-applications-demand/
https://europeanbusinessmagazine.com/business/macroeconomic-winds-and-industrial-demand-drive-silver-tomulti-year-highs/
https://www.iea.org/news/global-renewable-capacity-is-set-to-grow-strongly-driven-by-solar-pv
https://carboncredits.com/silvers-new-role-in-the-clean-energy-era-and-what-it-means-for-sierra-madre-investors/
https://goldsilver.com/industry-news/article/is-now-the-best-time-to-buy-silver-silver-2025-2030-forecasts/
https://www.goldenstatemint.com/blog/the-silver-supply-crunch-causes-and-opportunities-in-2025
https://goldsilver.com/industry-news/goldsilver-news/gold-silver-ratio-signals-potential-investment-shift-historicalpatterns-point-to-silvers-moment
https://silverelef.com/silver-mining-juniors

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