Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
While gold prices remain range-bound, silver has emerged as the standout performer in the precious metals space. The iShares Silver Trust (NYSEARCA: SLV), the world’s largest silver ETF, has surged 23% year-to-date, significantly outpacing both the S&P 500 and the TSX Composite Index. With silver benefiting from both industrial demand and monetary appeal, investors are expecting bigger gains in the silver investment field.
A key metric for silver investors is the gold-silver ratio, which currently sits at 93:1—far above its 10-year average of 65:1. Historically, when this ratio peaks, silver tends to play catch-up with gold, often delivering outsized gains.
“Silver frequently outperforms gold when Fed rate-cut expectations rise,” noted a Bloomberg Intelligence analyst. “Its dual role as both a monetary and industrial metal makes it uniquely positioned in the current macro environment.”
For investors seeking exposure to silver without the hassle of physical ownership, SLV offers an efficient and liquid solution. The ETF holds LBMA-certified silver, with vault inventories at 6-year lows, tightening supply.
Other than that, with $1B+ in daily trading volume, SLV ensures tight bid-ask spreads. The fund’s 0.50% expense ratio is also competitive among commodity ETFs.
Unlike gold, silver’s demand is heavily driven by industrial applications:
Solar Panels: The U.S. Inflation Reduction Act is accelerating solar adoption, boosting silver demand.
5G & AI: Silver’s superior conductivity makes it crucial for electronics and AI infrastructure.
EVs: Each electric vehicle uses ~25-50g of silver in electrical components.
The World Silver Institute forecasts a widening supply deficit in 2025, following 2024’s 5,000-ton shortfall.
After a 13% rally in the past month, some technical indicators suggest silver is overbought. However, fundamentals remain strong.
One one hand, global silver ETF positions are still 25% below 2020 peaks, leaving room for inflows. On the other, fed rate cuts could weaken the USD, further supporting the precious metal.
“This isn’t a bubble—it’s a revaluation,” said TD Securities’ head of commodity strategy. “Dollar-cost averaging is the smartest approach.”
Long story short, with strong industrial demand, monetary tailwinds, and an attractive gold-silver ratio, SLV offers a compelling way to capitalize on silver’s next leg higher.
