Gold vs. Silver Mining: Which Metal Delivers More Profit Per Ounce?
By Jarod Clark | Published: May 28, 2025
When it comes to precious metals, gold often commands the spotlight. Its price per ounce is dramatically higher than silver’s, and its global allure stretches across central banks, jewelry markets, and financial hedges. Yet when you dig deeper—literally—into the economics of mining, silver starts to shine in ways that defy first impressions.
Introduction
So which metal is more profitable to mine—gold or silver? The answer depends not just on market price, but on geology, extraction cost, global demand, and operational scale.
Gold: High Value, High Cost
As of May 2025, gold prices hover around $2,350 per ounce. But extracting that ounce is anything but cheap. The all-in sustaining cost (AISC) of gold mining—factoring in labor, fuel, refining, equipment depreciation, and site rehabilitation—averages between $1,250 and $1,450 per ounce globally.
That leaves a potential profit margin of about $900–$1,100 per ounce, depending on location and operational efficiency. However, gold mines also face more stringent environmental regulations and often require more intensive investment upfront.
Silver: Lower Value, Leaner Operations
Silver trades at around $28 per ounce in May 2025, a fraction of gold’s value. But silver’s AISC averages just $10–$15 per ounce, with some large-scale operations getting costs even lower.
Despite its lower price, this gives silver producers a margin of $13–$18 per ounce—not bad until you remember that you have to move 83 ounces of silver to match the dollar revenue of a single ounce of gold.
Yet silver is often mined as a byproduct of other metals (like zinc, lead, or copper), which radically reduces its effective mining cost. In these cases, silver can become essentially a free bonus.
Volume vs. Value: Business Models Differ
Gold mines typically operate on a value-per-ounce model, with lower tonnage and richer ore. Silver operations focus on high-volume throughput, often refining huge quantities of ore for modest gains per ton.
While gold is seen as a financial asset, silver straddles both worlds—as an industrial metal and a monetary hedge. This dual demand can make silver prices more volatile, but it also gives miners exposure to broader economic cycles.
The Verdict: Margin or Market?
Gold offers a higher profit per ounce, but silver can deliver more scalable operational models—especially when extracted alongside other metals. The best choice depends on the miner’s infrastructure, location, and market outlook.
For investors and mining companies alike, the battle between gold and silver isn’t just about price. It’s about strategy, geology, and how well you can squeeze profit from the Earth.
