Sprott: Silver to skyrocket. Be positioned before the crowd realizes it.
Silver is Wildly misplaced according to Eric Sprott. Lean and Profit from Fundamentals and Logic
First Chapter - Gold
Gold has been on a historic rally over the past year, hitting fifty all-time highs in the last twelve months—a feat not seen in over a decade. This surge is reminiscent of the late 1970s, when gold experienced its most dramatic rise in history amid economic instability and geopolitical turmoil. Today, the factors driving gold’s ascent are multifaceted, stemming from inflationary pressures, fiscal challenges in the United States, heightened geopolitical risks, and record levels of physical gold buying. Taken together, these elements have created an environment where gold has rarely been more attractive as a safe-haven asset.
One of the primary drivers behind gold’s rally has been inflation. Although inflation rates have moderated somewhat since their post-pandemic peaks, core inflation in the United States remains stubbornly elevated. Persistent price increases across key sectors continue to erode purchasing power and undermine confidence in fiat currencies. Historically, gold has served as a hedge against inflation, offering investors a store of value when traditional assets like bonds or equities lose their appeal. Compounding this issue is the U.S.’s fiscal situation, with deficit spending reaching $1.8 trillion annually and total debt nearing $37 trillion. The growing debt burden raises concerns about fiscal sustainability and the long-term viability of the dollar as the world’s reserve currency. For investors wary of these risks, gold provides an alternative that is free from counterparty risk and immune to monetary policy mismanagement.
Geopolitical tensions have also played a significant role in funneling capital into gold markets. The ongoing war between Russia and Ukraine continues to destabilize Eastern Europe, while unrest in the Middle East adds further uncertainty to global energy supplies and trade routes. These conflicts have kept the Geopolitical Risk Index at historically elevated levels since 2022, reflecting widespread investor unease about global stability. Trade disputes between major economies such as the United States and China have only added to this uncertainty, creating an environment where safe-haven assets like gold thrive.
Central banks have been another critical factor in supporting gold prices. Over the past year, central banks worldwide have ramped up their purchases of physical gold to diversify reserves and reduce exposure to volatile currencies. In 2023 alone, central banks bought over 1,200 metric tons of gold—the highest level on record—and this trend shows no signs of slowing down. As geopolitical risks persist and concerns about currency devaluation grow, central banks are likely to continue increasing their allocations to gold, providing sustained demand for the metal.
Adding further complexity to this backdrop is the looming debt ceiling crisis in the United States. The debt ceiling has acted as a cap on federal borrowing for years, but with total debt approaching $37 trillion, policymakers face difficult decisions about whether to raise or suspend it once again. A failure to address this issue could lead to government shutdowns or disruptions in financial markets, further driving investors toward safe-haven assets like gold.
While gold’s performance over the past year has been extraordinary, it is important to consider potential risks that could temper its rally. A resolution to major geopolitical conflicts or trade disputes could reduce demand for safe-haven assets if market conditions stabilize. Similarly, fiscal tightening or policy shifts aimed at addressing inflation could restore confidence in traditional investments like equities or bonds. Additionally, after such a rapid rise in prices, some analysts warn that short-term corrections or periods of consolidation may be inevitable.
For investors seeking stability amid growing volatility and uncertainty, gold remains an attractive option. Its historical role as a hedge against inflation and geopolitical risk makes it particularly appealing during periods of economic instability. However, it is equally important for investors to approach gold with a balanced perspective. While it can serve as a valuable component of a diversified portfolio, relying solely on gold as an investment strategy may expose investors to risks associated with price volatility or changing market dynamics.
In conclusion, gold’s recent rally reflects broader concerns about inflationary pressures, fiscal irresponsibility, geopolitical instability, and central bank policy shifts. These factors have created one of the most favorable environments for gold in decades. However, critical thinkers should remain vigilant about potential risks while recognizing that gold’s appeal as a safe-haven asset is deeply rooted in its ability to weather periods of uncertainty and market turbulence. As global economic conditions evolve, gold’s role as both an investment vehicle and a barometer of market sentiment will remain central to financial decision-making strategies worldwide.
Silver is Going to Go Ballistic Soon… to The Moon
Silver’s current price of $34.40 per ounce represents what veteran investor Eric Sprott calls a “historic mispricing” in the precious metals market. While gold continues to dominate headlines with its record highs, silver’s fundamentals—and its glaring asymmetry to gold—suggest it may be the most undervalued asset in global markets today. Here’s why the case for silver has never been stronger.
The Gold-Silver Ratio: A 6,000-Year Anomaly
For millennia, the gold-silver ratio hovered between 8:1 (Ancient Rome)
and 15:1 (U.S. Coinage Act of 1792).
Today, it sits at 90:1, meaning one ounce of gold buys 90 ounces of silver. T
This divergence defies both historical precedent and geological reality: silver is mined at just 8:1 relative to gold globally
Yet trades as if it were 11 times less scarce.
Eric Sprott argues this imbalance is unsustainable, noting that a reversion to the 15:1 ratio—last seen during the Roman Empire—would send silver to $200/oz if gold holds at $3,000.
This isn’t theoretical.
During the 2011 bull market, silver surged to $49.51 while gold peaked at $1,900, a ratio of 38:1.
To reclaim even this modest relationship today, silver would need to hit $78/oz.
Supply-Demand Dynamics: A Perfect Storm
Industrial Demand
Silver is indispensable to the energy transition, with 60% of demand now tied to industrial uses like solar panels (100M ounces/year), EVs, military, aerospace, AI and 5G infrastructure. We are experiencing record industrial demand in 2025, driven by China’s solar expansion and AI/data center growth. New photovoltaic technologies now use 20% more silver per panel, while AI servers require silver-heavy semiconductor components.
Structural Deficit
The silver market has been in a supply deficit for five consecutive years, with 2025’s shortfall expected to exceed 150 million ounces. Mine production remains stagnant, as 80% of silver is extracted as a byproduct of copper, zinc, and lead mining—sectors facing declining output. Recycling rates are negligible, leaving no buffer for demand shocks.
Investment Demand
While gold attracts central banks and ETFs, silver ownership is highly concentrated among retail investors and contrarians like Sprott. This asymmetry means even marginal capital shifts could ignite parabolic moves. Consider:
A 1% reallocation from the $12T gold market to silver would inject $120B—equivalent to three years of global silver production.
Physical silver inventories at exchanges like COMEX have plunged 40% since 2020, with registered stocks covering just 17 days of global demand.
Catalysts for a Breakout
Monetary Policy: With real interest rates negative in most economies, precious metals benefit from yield-starved capital. Silver’s lower liquidity amplifies gains during Fed easing cycles.
Tariffs & Trade Wars: Trump’s proposed 60% tariffs on Chinese goods have already triggered preemptive silver hoarding by manufacturers. A full-blown trade war could choke supply chains, spiking industrial buyers into panic purchasing.
Geopolitical Hedging: Silver’s dual role as both industrial metal and monetary asset makes it a unique hedge. Unlike gold, its price reflects not just fear (demand for safety) but also growth (demand for technology).
Risks vs. Rewards
Critics cite silver’s volatility, but this cuts both ways. While gold has risen 15% YTD, silver is up 43%, outperforming every major asset class.
WisdomTree forecasts $40/oz by Q3 20257, but Sprott’s $200 target implies 481% upside—a return dwarfing gold’s projected 9% gain over the same period7.
Even conservative analysts like Daniel Boston (Preserve Gold) see silver doubling to $60-70 as it retests 2011 highs. For context, achieving the Roman-era 8:1 ratio at current gold prices would mean $375 silver.
The Asymmetric Opportunity
Gold’s rally has been spectacular, but silver’s fundamentals are arguably more compelling. With industrial demand eating into finite supplies, a shrinking gold-silver ratio, and a market structure primed for shortages, silver represents what Sprott calls “the trade of the decade.”
Investors clinging to gold at $3,000/oz are chasing momentum; those positioning in silver at $34.40 are front-running a supply crisis with 6,000 years of monetary history as their tailwind.
As Eric Sprott bluntly states:
“Silver is going to skyrocket. The only question is whether you’re positioned before the crowd realizes it.”
not financial advice
Monday March 31 is SilverSqueeze 2.0
Buy all the physical Silver you can get your hands on
This is your Final Warning
Let’s go!