Core Viewpoint - Silver is projected to reach around $400 per ounce by 2032, driven by a combination of historical undervaluation, supply deficits, and increasing demand [1][21][54]. Group 1: Silver's Undervaluation - Silver remains significantly undervalued when adjusted for inflation, with its 1980 peak of $48 per ounce equating to approximately $199 today, indicating a need for a nearly 300% increase to match historical values [5][6][7]. - The current price of silver in the low $50s suggests it would need to rise by 45% to match its 2011 real-term value [6][7]. - The disconnect between silver prices and the growth of the U.S. monetary supply and federal debt highlights its mispricing, with M2 money supply increasing over 1,200% and federal debt nearly 3,800% since 1980 [9][10][11]. Group 2: Supply and Demand Dynamics - Global silver demand has exceeded supply for five consecutive years, with a projected deficit of approximately 187 million ounces for 2025, indicating a structural shortage rather than temporary imbalances [26][27]. - Silver inventories have declined by about 32% since 2020, with significant deliveries reported in 2025, reflecting a growing preference for physical silver over paper contracts [28][31]. - Retail premiums for silver in Asia have surged, with prices reported at 107-150% above global spot prices, signaling a real scarcity in the market [31][32]. Group 3: Market Positioning and Sentiment - Recent Commitment of Traders (COT) data shows a coordinated shift in positioning among market participants, with commercials, funds, and retail investors all preparing for higher silver prices [33][41]. - Managed money players have significantly increased their long positions, indicating strong institutional interest and a bullish sentiment in the silver market [38][39]. - The overall market structure has improved, with open interest climbing over 30% since 2023 and a decrease in concentration among large banks, suggesting a more diverse and liquid market [40][41]. Group 4: Technical Outlook - Silver has broken through a 45-year resistance zone, completing a long-term cup-and-handle formation, which suggests a potential price target near $400 per ounce [44][45][46]. - Historical patterns indicate that similar setups have preceded significant price rallies, reinforcing the expectation of a substantial increase in silver prices [46][47]. Group 5: Conclusion - The combination of deep undervaluation, structural supply deficits, rising premiums, and positive market sentiment creates a compelling case for silver's revaluation, with triple-digit prices seen as a logical outcome rather than speculative [53][54].