Gold and silver prices have skyrocketed in recent months. Gold rose to a record high above $5,500 an ounce, and silver topped $100 an ounce for the first time.

Enter FTSE100 miner, Fresnillo (LSE:FRES). This mining giant mines gold and silver, mainly in Mexico. Over the past year, the company’s share price has increased by 430%. That’s a crazy good result for a FTSE 100 share, as the average for the index was around 22%.

He even beat me in the last five years Rolls-Royce shares, which may seem difficult to believe given the company’s post-pandemic strength.

Top performer on the FTSE 100

But can Fresnillo continue its meteoric rise in 2026?

Well, that depends on whether the demand for gold and silver continues to grow. Rising gold prices are due to central bank purchases of the shiny metal, a weaker U.S. dollar and geopolitical tensions.

As for silver, it tends to fluctuate even more dramatically than gold. Some even call it “gold on steroids.” Like gold, silver is also seen as a secure haven in uncertain times. But unlike this, it also has mighty industrial applications. It is used, for example, in solar panels, electric vehicles and AI data centers. All of these are expected to be high growth sectors in the coming years.

In the past, when precious metals have experienced rapid rallies, they can become quite volatile. Prices can swing wildly in both directions. They may also experience profit-taking in the low term.

That said, many experts expect medium- and long-term trends to push prices higher. Many huge banking institutions are targeting more than $6,000 for gold and more than $150 for silver this year.

As for Fresnillo, its direct link to popular supercycles like the one we may be experiencing currently sets it apart in terms of continued outperformance in 2026. The company delivered solid results for 2025, but recent downward adjustments to 2026 production have introduced some caution.

Leveraged play on gold and silver

As a low-cost operator, it remains competitive and offers profit margin resilience and mighty cash flow generation. The return on capital employed at the level of over 17% proves good employ of capital. In contrast, the forward price-to-earnings ratio of 30 is in line with historical averages during bull cycles. As a bonus, Fresnillo also offers a 2% dividend rate.

However, keep in mind that if precious metal prices reverse for an extended period, Fresnillo stock could suffer short-term losses.

Therefore, I would only own it as part of a balanced and diversified portfolio. FTSE 100 shares are typically huge, mature and established companies that don’t often post triple-digit profits.

But there are outliers from time to time. Last year, six FTSE 100 stocks returned over 100%.

It is not known whether there will be a repeat in 2026, but it is certainly possible. That said, after the short-term volatility in precious metal prices, I believe long-term trends will continue to support them. This should bode well for Fresnillo in 2026.