Gold SWOT: DPM Metals and Discovery Silver Rose More Than 10% Last Week

Frank Holmes

Strengths

Silver was the best-performing precious metal last week, gaining 3.73%. According to Bloomberg, silver ETFs added 1.09 million troy ounces in the latest session, a sign of strengthening investor demand. The metal continues to benefit from its dual role as a safe-haven asset during rising geopolitical tensions and as an important industrial input, supporting long-term demand from sectors such as clean energy and electronics.

According to Kitco, China’s gold imports reached a 26-month high in May and are up 76% year to date, highlighting strong physical demand from the world’s largest gold market. Continued buying by Chinese consumers and investors is providing important support for gold prices amid ongoing macroeconomic and geopolitical uncertainty.

Both DPM Metals and Discovery Silver shares rose more than 10% this week. DPM continued to gain momentum after its second-quarter earnings beat, while Discovery Silver advanced after reporting drill results that confirmed an expanded deposit at its Ontario mine. The company said 47 drill holes at the Pamour Mine showed the mineral deposit extends across all three phases of its current open-pit mine plan, with high-grade intersections identified at multiple new targets near existing deposits. CEO Tony Makuch said the results could help establish the project as a significant mining operation in Canada, according to Dow Jones. For investors tracking the sector, these moves highlight how earnings execution and resource-definition updates can still drive outsized share-price reactions even in a market focused on broader gold and silver trends.

Weaknesses

Platinum was the worst-performing precious metal last week, falling 0.84%, as investor interest remained weaker than for gold and silver. The latest CFTC data showed a modest decline in speculative net long positioning, suggesting limited investor conviction despite a constructive long-term supply outlook.

Azerbaijan’s precious metals production declined in the first half of 2026, with gold output falling 17.8% year over year to 1.32 tons and silver production dropping 6.9% to 1.81 tons, according to Interfax. While the decline weighs on Azerbaijan’s mining sector, global gold production has largely plateaued since 2010, limiting new supply growth even as higher prices encourage some incremental production increases.

Russia’s central bank sold a record 44 tons of gold in the first half of 2026, including 9.3 tons in June, as the government sought additional funding amid a widening budget deficit, according to Bloomberg. The move underscores how central-bank gold activity can change during periods of fiscal pressure and could add supply to the market.

Opportunities

Agnico Eagle increased its ownership stake in Cadillac Mines to 11.1% through a C$60 million investment, while Cadillac completed an upsized C$385 million initial public offering, according to Bloomberg. The transactions point to continued investor appetite for high-quality gold assets and show that capital remains available for well-positioned mining projects despite broader market uncertainty.

The Canadian government has allocated C$10 billion to four Arctic “nation-building” projects and referred them to the Major Projects Office (MPO) to speed up permitting, according to Raymond James. The initiatives include major infrastructure projects such as roads and are expected to support long-term economic activity in northern Canada.

Scotia visited the Hemlo Gold Mine in Ontario and returned with increased confidence in the mine’s operational and exploration potential. Analysts pointed to the strength of the operating team and ongoing efforts to optimize mining and milling rates, improve production, and reduce costs over the next two-plus years.

Threats

Bank of America forecasts that total capital returns across its coverage universe will decline 18% to $3.6 billion in Q2 2026E, down from $4.4 billion in Q1 2026, mainly because of lower free cash flow. The firm expects free cash flow to fall to $4.0 billion in Q2 2026E from $9.5 billion in the prior quarter.

A Ghanaian court sentenced a prominent opposition politician to 20 years in prison after finding him guilty of illegal mining, marking the highest-profile conviction in the country’s ongoing fight against “galamsey.” While Ghana continues efforts to curb illegal mining, the government has also increased pressure on gold producers to generate more revenue, raising concerns about the country’s attractiveness as a destination for new mining investment.

India’s silver imports have slowed sharply after a new licensing regime disrupted shipments, pushing domestic premiums to multi-month highs, according to Bloomberg. Many banks have yet to obtain the required import permits, creating near-term supply constraints in one of the world’s largest silver markets.

About the author

Frank Holmes

Frank Holmes is the CEO and chief investment officer of U.S. Global Investors. He purchased a controlling interest in U.S. Global Investors in 1989 and became chief investment officer in 1999. In 2006, he was selected mining fund manager of the year by the Mining Journal, and in 2011 he was named a U.S. Metals and Mining "TopGun" by Brendan Wood International. In 2016, Holmes and portfolio manager Ralph Aldis received the award for Best Americas Based Fund Manager from the Mining Journal. He is also the co-author of The Goldwatcher: Demystifying Gold Investing.

More than 30,000 subscribers follow his weekly commentary in the award-winning Investor Alert newsletter, which is read in over 180 countries. Under his guidance, the company’s mutual funds have received recognition from Lipper and Morningstar, two independent financial authorities.

In 2015, Holmes led the company into the exchange-traded fund (ETF) business with the launch of the U.S. Global Jets ETF, which invests in the global airline sector. In 2017, U.S. Global Investors made a strategic investment in HIVE Blockchain Technologies, listed in Toronto, and Holmes was appointed non-executive chairman of the board.

Holmes received the Huron Medal of Distinction from Huron University College in 2013, his alma mater for the class of 1978. The award recognizes individuals whose life achievements set an example of excellence and reflect Huron’s arts and social sciences missions.

He is a native of Toronto and a graduate of the University of Western Ontario with a bachelor’s degree in economics. He is a former president and chairman of the Toronto Society of the Investment Dealers Association.

Holmes is a frequent keynote speaker at national and international investment conferences. He has spoken at the Investing in African Mining Indaba conference, the Denver Gold Group’s European Gold Forum, and numerous Money Show events, and has participated in panels with industry leaders including the editor of Barron’s. He continues to be invited as a keynote speaker at conferences throughout the U.S., Canada, and overseas.

He is a regular commentator on CNBC, Bloomberg, BNN, and Fox Business, and has been profiled by Fortune and The Financial Times. His views on gold are featured each week on a program called Gold Game Film in collaboration with Kitco News and TheStreet.com. Holmes was also featured in Barron’s during the commodity rally at the start of 2004. He is a regular contributor to Forbes, Business Insider, Seeking Alpha, and Wall Street Journal’s Experts Corner.

Frank Holmes has been appointed non-executive chairman of the Board of Directors of HIVE Blockchain Technologies. Both Holmes and U.S. Global Investors own shares of HIVE, directly and indirectly. This interview should not be considered a solicitation or offering of any investment product.

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