Silver Market Sees Historic Streaming Deal Amid Price Pullback

BHP and Wheaton Precious Metals sign a record $4.3 billion silver streaming deal for Peru's Antamina mine, signaling long-term confidence despite recent price volatility.

In a landmark transaction for the mining sector, BHP and Wheaton Precious Metals have finalized a record-breaking $4.3 billion streaming agreement for silver from Peru's Antamina mine. The deal's timing is particularly notable, coming as the silver price trades near $70 per ounce, having retreated approximately 40% from its late-January all-time high.

A Strategic Transaction for Both Parties

The agreement enables BHP to monetize its 33.75% stake in Antamina, one of Peru's largest silver-producing assets. Starting April 1, 2026, Wheaton will receive a combined 67.5% of all silver produced from the mine. This is expected to average roughly six million ounces annually over the first five years of the contract. For BHP, the capital from this by-product flows back into its core operations. Wheaton, meanwhile, achieves a substantial expansion of its production base.

The commitment of institutional capital on this scale represents a clear long-term vote of confidence in silver, irrespective of current price pressures.

Analyzing the Recent Price Correction

Between late January and mid-March, silver declined from $121.64 to below $78 per ounce. According to source analysis, this correction was not driven by a deterioration in fundamental supply and demand. Instead, key factors included rising government bond yields, a strengthening U.S. dollar, and liquidations following U.S.-Israel attacks on Iran. A more restrictive tone from central banks, from the Federal Reserve to the Bank of Japan, has also increased the opportunity cost of holding non-yielding assets like silver.

Structurally, the market remains tight. The Silver Institute forecasts a supply deficit of 67 million ounces for 2026, which would mark the sixth consecutive year of shortfall. Photovoltaic demand continues to be a central growth driver, even as it is projected to dip to around 194 million ounces in 2026. This decline comes despite an expected 15% growth in global solar capacity, as manufacturers reduce silver content per module and explore alternatives when prices are elevated.

Revised Bank Forecasts Signal Cautious Optimism

J.P. Morgan Global Research has significantly raised its average silver price forecast for 2026 to $81 per ounce, up from a previous estimate of $56.30. Its quarterly targets are set between $84 and $85. This revised outlook sits well above current spot prices but also implies that the bank does not anticipate a rapid return to the January highs in the near term.

The multi-billion dollar pact between BHP and Wheaton is therefore more than a mere financial arrangement. It underscores how long-term oriented capital views the present period of weakness as a structural entry opportunity—record transaction size included.