Pure play silver miners offer deep value
The bull case argued for pure play silver miners is that paper market selling has artificially depressed their stock prices despite a persistent physical supply deficit.
The argument
The guest argued that silver is in its sixth consecutive year of physical supply deficits, driven by industrial and solar demand. However, paper trading volume has doubled relative to physical backing, creating a price distortion that presents an entry opportunity in miners with low extraction costs.
The thesis, stress-tested
✓ What validates it
- ✓Sustained physical silver demand from Asia and the Middle East
- ✓Widening of the physical supply deficit in annual industry reports
▸ Risks discussed
- ▸High volatility driven by algorithmic and paper trading
- ▸Jurisdictional risks in mining regions like Mexico
Hear it yourself
"And one of the reasons why silver is so underperformed is because the volume of paper silver trading has doubled relative to its average reflection of what ounces of silver backing some of those paper ETFs actually physically are."
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