The longer disruptions in the Strait of Hormuz continue, the longer a full recovery in energy flows is likely to become. My working thesis is that inflation will ramp up the next few quarters and stay higher for longer – and that should ultimately be quite bullish for silver. I like Americas Gold and Silver Corp. (USAS), says Peter Krauth, editor of Silver Stock Investor.
While oil prices could fall sharply if a US-Iran deal is reached and geopolitical risks ease, a sustained decline will likely depend on stronger oil market fundamentals, which may not materialize until 2027.
What’s more, shipping activity remains well below normal levels, with tanker shortages, insurance concerns, and navigational risks potentially delaying a return to pre-war export volumes.
Americas Gold and Silver Corp. (USAS)
That should lead to higher oil prices for longer. And that’s in addition to more money printing thanks to war. It destroys things, requiring more money printing to fund rebuilding.
As for USAS, it reported outstanding resource conversion drilling results from the Cosalá Complex, with the San Rafael Upper, 120 Upper, and 120 Lower zones all returning silver grades well above the current resource model. These results were received after the October 2025 resource cutoff and were not included in the recently updated Mineral Resource and Reserve estimate.
Here’s why this matters: The 14 drill holes confirmed the modeled mineralized thickness while indicating the potential for significantly higher average silver grades. What’s more, the intercepts are located immediately adjacent to existing mine infrastructure, making them highly valuable for future mine planning.
These encouraging results could add meaningful value to the mine plan as they are incorporated into an optimized strategy for the second half of 2026. Even better, the strong intercepts further highlight the significant exploration upside that remains at Cosalá as the company advances its most ambitious drilling campaign to date.
Recommended Action: Buy USAS.
