On March 19, 2026, Gold and silver erased over $3 trillion in market value. Whenever this happens, the first instinct is to panic. While that is valid, it's important to ask the most important question: "Why?" Beyond the headlines, this moment signals something deeper that every investor must pay attention to. How A Bullish Run Turned Into A Sudden BreakdownTo understand today’s sell-off, you have to understand the extraordinary run that preceded it.Gold surged nearly 96% in the 12 months leading up to its ...

Core Insights - The ongoing geopolitical tensions, particularly the Iran conflict, have led to significant market volatility, with a notable shift from traditional safe-haven assets like gold to cryptocurrencies such as Bitcoin and Ethereum [1][2][5]. Market Reactions - Gold and silver experienced a dramatic decline, with gold dropping 2.05% and losing approximately $750 billion in market value, while silver plunged 7%, erasing around $370 billion [2][3]. - In contrast, Bitcoin surged above $69,000, gaining 5% and adding an estimated $60 billion to its market capitalization, while Ethereum increased by 5.8%, contributing an additional $23 billion [3][5]. Capital Rotation - The crypto market saw a rapid influx of capital, with a total of $100 billion added in a short time frame, indicating a significant shift in investor sentiment away from gold [5]. - This rotation was unexpected, as historical trends typically show gold outperforming during geopolitical crises [5]. Derivatives and Market Structure - Initial market reactions led to approximately $300 million in crypto liquidations, but derivatives data indicated a resilient market structure with limited speculative excess [6]. - Funding rates were low, sitting in the 6th percentile, and open interest only declined by about $1 billion, suggesting that leverage had been largely removed prior to the geopolitical escalation [6]. Historical Context - Previous tensions in the Middle East resulted in more chaotic price movements, whereas Bitcoin's response this time was more stable, indicating a potential maturation of the crypto market [7].

Financial Data and Key Metrics Changes - In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, a 48% increase compared to 2024 [5] - The company reported record revenue of $468 million, up 115% from 2024, with cost of sales at $385 million and mine operating earnings of $83 million [7] - Mine operating cash flow before taxes rose by 116%, while cash costs increased to $19 per ounce of payable silver [7][8] - Adjusted net earnings for Q4 were $4.8 million, or $0.02 per share, impacted by realized losses from derivative contracts and higher financing costs [7][8] Business Line Data and Key Metrics Changes - In Q4, Endeavour Silver produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces, representing a 146% increase compared to Q4 of 2025 [6] - Excluding Coba and Terronera, production was up 27% compared to the same period last year [6] Market Data and Key Metrics Changes - Silver and gold prices have seen exceptional gains, with gold trading above $5,000 and silver above $90, reflecting ongoing confidence in precious metals [4] - The company is well-positioned to benefit from current silver prices, indicating substantial runway remaining in this cycle [4] Company Strategy and Development Direction - Endeavour Silver's strategic initiatives include the acquisition of Kolpa, achieving commercial production at Terronera, and advancing the Pitarrilla development asset [4][5] - The company plans to invest $68 million in Pitarrilla in 2026, including completing a feasibility study and advancing construction [12] - The focus remains on operational investment priorities across main operations and projects to drive growth in 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of safety and operational stability, especially in light of recent security events in Mexico [3] - The transition from diesel to liquefied natural gas is expected to significantly reduce operating costs starting in Q2 2026 [8][17] - Management expressed confidence in achieving a steady state of operations at Terronera by mid-year 2026, with expectations for improved throughput and recoveries [11][91] Other Important Information - The company raised $350 million through a convertible debt offering in December, strengthening its balance sheet [5] - As of December 31, 2025, the company's cash position was $215 million, providing financial strength for strategic initiatives [10] Q&A Session Summary Question: Updates on operational issues at Terronera - Management confirmed improvements in mill availability and electrical disruptions, with expectations to transition to LNG for better stability and cost efficiency [15][17] Question: Grade profile at Terronera - Management indicated that lower grades were due to mining lower grade stockworks initially, with expectations for higher grades in the second half of 2026 [19][23] Question: Capital spending and development at Terronera - Management acknowledged being slightly behind on development but expects costs to decrease as operations stabilize [26][28] Question: Impact of silver prices on costs - Management noted that higher silver prices would increase direct costs due to royalties and duties, but margins remain strong [41][43] Question: Derivative hedge and risk management - Management discussed the remaining gold hedge and the company's policy to remain unhedged on silver, focusing on managing exposure to currency fluctuations [48][50] Question: Accounting implications of Bolanitos sale - Management confirmed an accounting gain from the sale of Bolanitos and discussed the impact of construction costs on taxes [70][72]

Core Viewpoint - Gold futures have regained the $5,000 level after experiencing the worst performance in 46 years just the previous week [1] Group 1: Market Performance - Gold futures (GC00) increased nearly 3%, reaching $5,071.90 per ounce [1] - Despite the recent rise, gold is still down 9% from its intraday high of $5,000.00 on January 29 [1]

Core Insights - Gold and silver prices experienced a significant decline following a selloff, with gold falling from record highs and silver posting its largest daily loss in 46 years [1][6] - The bullish sentiment surrounding gold has diminished, particularly due to changes in U.S. monetary policy credibility after the nomination of Kevin Warsh as Federal Reserve chair [2][3] Price Movements - Silver futures dropped over 30% from recent highs, entering bear-market territory, while gold is down approximately 13% from its record high [3][5] - The most-active March silver contract fell over 9% at one point, settling with a loss of 1.9% at $77.01 per ounce [4] - Gold for April delivery settled at $4,652.60 per ounce, down more than $974 from its recent intraday high of $5,626.80 [5][6] Market Reactions - The scale of the selloff was unprecedented, with gold prices marking their largest one-day decline on record, and silver experiencing its largest daily drop since 1980 [6] - Analysts suggest that such drastic market movements may deter investors from holding positions in hopes of a rebound [6]

Market Overview - Silver futures experienced a significant decline, marking the worst daily drop since 1980, with a settlement price of $78.53 an ounce, down 31% on Comex [4] - The U.S. dollar strengthened following President Trump's nomination of Kevin Warsh as the next Federal Reserve chair, leading to selling pressure in precious metals [1] Market Conditions - Analysts noted that the metals market had been "incredibly frothy," with signs of disorder emerging prior to the drop [2] - Positioning in the gold and silver markets was heavily skewed towards long positions, with increased volatility contributing to the sharp price movements [3] Trading Dynamics - The rush to sell was characterized by a simultaneous exit from long positions, which exacerbated the price decline [4] - The iShares Silver Trust saw a 27% drop on Friday, the largest daily decline since records began in 2006, although it remained up nearly 19% for the month [5] Price Trends - Silver prices reached a record high of $115.504 before the drop, still showing an increase of over 11% for the month [5] - Gold prices also fell, with April delivery settling at $4,745.10 an ounce, down 11% from a record high of $5,354.80, but still up about 9% for the month [5]

Core Viewpoint - Gold and silver prices experienced significant volatility, with a notable decline on Friday after reaching highs earlier in the week [1] Price Movements - Silver prices on COMEX peaked above $120 per ounce earlier in the week, indicating a strong upward trend before the recent downturn [1]

Group 1 - Stock futures are rising as investors assess mixed earnings reports from major technology companies [1] - Futures for the Dow Jones Industrial Average increased by 50 points, or 0.1%, while S&P 500 futures rose by 0.2% and Nasdaq 100 contracts gained 0.3% [1] - The three major indexes showed no significant movement on Wednesday following the latest Federal Reserve policy meeting, which did not surprise the market [1]

Core Viewpoint - The silver market is experiencing a significant rally, with prices expected to continue rising due to a physical supply shortage and high demand, leading to potential dysfunction in trading markets [1][5]. Price Movement - Silver prices have surged past $50 per ounce, reaching approximately $51.50, with Comex silver futures climbing 5% to $49.71, indicating a strong upward trend [3]. Market Outlook - Bank of America has set a bullish price target of $65 per ounce for silver by 2026, despite anticipating a possible short-term correction and an 11% decline in physical demand [2]. - Analysts predict a physical deficit in silver, which supports expectations of a 30% price rally [2]. Supply and Demand Dynamics - The current physical demand for silver exceeds supply, with borrowing rates for silver surpassing 100%, necessitating higher prices to balance the market [4]. - The London Bullion Market Association is facing severe operational challenges due to insufficient physical silver to meet the demand from spot contracts, leading to market dysfunction [5]. Inventory Issues - The London silver cash market is under pronounced stress due to a significant decline in available inventories, which have dropped by one-third since 2021 [7]. - There is a notable premium for London silver spot prices over Comex futures, reflecting the physical shortage in the market [7].