February 25, 2026
Mexico Shootouts Light a Fire Under Silver
Dear Subscriber,
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| By Sean Brodrick |
There’s trouble erupting south of the border … and it’s roiling the world’s gold and silver markets.
It’s also handing you an opportunity to pick up silver miners on the cheap.
Mexico is the world’s largest silver producer. It’s responsible for roughly one‑quarter of global mine output.
So, any disruption there hits the perceived silver supply directly.
Like it is right now …
In January, 10 workers were abducted at a silver project in Sinaloa. That’s in the state of Jalisco in Western Mexico.
A “civil war” broke out between cartel factions. At least five people died.
Fast forward to this past Sunday. The Mexican army raided the Jalisco New Generation Cartel’s operations and killed its leader, Nemesio “El Mencho” Oseguera Cervantes.
The CJNG is notorious as Mexico’s most violent cartel.
And its members vowed revenge for El Mencho’s death.
They followed up with widespread arson, shootings, hijackings and attacks on security forces.
Over 70 people have died. And some 23 inmates have escaped jail amid all the violence.
The retaliation has been national in scope but regionally concentrated.
The most intense and sustained violence in Jalisco and neighboring western/central states.
Some important silver and gold mines are in those states.
No wonder, then, that gold went up on Monday — and silver rocketed by nearly 6%!
Silver, as measured by SLV, is up almost 7% in February. And gold, as measured by GLD, is up more than 8% this month.
Naturally, as metals rose, many mining stocks followed suit. But some didn’t.
Some precious metals miners, developers and explorers even went down. You can guess why, right?
Because those companies operate in the areas of Mexico that the cartels are terrorizing.
The market is repricing jurisdiction and logistics risk for silver.
Mines, transport routes and insurance for moving silver bars within Mexico are all being flagged as structurally higher risk.
And, thus, more costly.
For example, there are fears that the cartels could place roadblocks to levy “taxes” on producers.
So, Where’s the Opportunity?
I’ve put together a chart showing some popular companies that have gotten caught in the crossfire.
First Majestic Silver (AG) is the most exposed stock on this list because it’s a pure-Mexico, pure-silver play.
Interestingly, its price went up on Monday.
Yet, I don’t think it disproves my theory that good silver stocks are going down on bad perception …
AG is an exception because the company had a major earnings beat last week. And it doubled its dividend.
I recently interviewed First Majestic’s CEO. You can watch that video HERE.
But many miners with Mexican exposure did go down — Endeavour Silver (EXK), Alamos Gold ( AGI), Pan American Silver (PAAS ) and Coeur Mining (CDE) all slid on Monday.
And smaller explorers I haven’t put on this list got hammered as investors worried that their development timelines might be seriously delayed.
Bargain Hunting Time
If you just want to avoid trouble altogether, there are stocks on that list with no Mexico exposure.
But make no mistake: This violence will pass.
And then it will be time to bargain-hunt in Mexico.
One of the first signs will be when these stocks start to run higher again.
Then you’ll want to buy with both hands.
Importantly, I continue to believe gold is going to $10,000 an ounce in this cycle. Silver is still going to $400 — more than a TRIPLE from recent prices.
If I’m right, these stocks are cheap, cheap, cheap.
If you’re still interested, but don’t like single-stock risk, consider the Global X Silver Miners ETF (SIL).
You can see it’s trending higher.
SIL has gained almost 17% just since Feb. 1. That means it has doubled GLD’s performance (+8.1%) and nearly tripled SLV’s (+6.8) in that time.
I believe SIL’s going to push past its January highs and go much, much higher.
If you do too, you know what to do.
All the best,
Sean
P.S. I always consider the risks and rewards when selecting individual mining stocks.
In fact, I’ll show you my most recent findings here.
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