Silver: 'Poor Man's Gold' No More?

Core Viewpoint - The narrative of silver being a secondary asset to gold has collapsed, with silver reaching unprecedented price levels and significant market movements indicating a shift in investor perception [1]. Group 1: Silver Market Performance - Silver has surged nearly 200% over the past 12 months, rising from approximately $30 to over $88 per ounce [2]. - The iShares Silver Trust (NYSE:SLV) has gained 43% in the last month, reflecting strong investor interest [2]. - Silver mining companies, such as First Majestic Silver Corp. (NYSE:AG) and Pan American Silver Corp. (NYSE:PAAS), have also seen significant price increases [2]. Group 2: Retail Investor Dynamics - The "silver squeeze" movement, driven by retail investors on platforms like X and Reddit, has successfully drained retail inventories [3]. - This current iteration of the silver squeeze is characterized by substantial physical drawdowns, with investors demanding physical delivery, leading to increased premiums [3]. Group 3: Industrial Demand and Supply Constraints - Silver's role in technology, particularly in AI and solar sectors, is a major driver of its price rally, as it is essential for conductivity in high-tech applications [4][5]. - The world is facing a structural supply deficit for silver, which has persisted for six consecutive years, exacerbated by new export restrictions from China [4]. - The increasing demand for photovoltaic technology as nations pursue green energy targets is contributing to the tightening supply of physical silver [5].