Mihail Stefanov @mihen1: "Reflections on the Theme of..."

Bulgaria

Reflections on the Theme of Silver In line with the expectations and forecasts I’ve been sharing with you over the past few months, $SILVER has posted an impressive surge, effectively doubling in price since the beginning of the year and positioning itself among the top-performing investments. However, all indicators suggest that the growth potential is far from exhausted — in fact, it appears we are still at the early stages of a bullish cycle. At the previous peak, the silver-to- $SPX500 ratio reached 0.04. Today it stands at just 0.009, implying that silver would need to rise roughly fourfold simply to revisit that prior high. Measured against $GOLD silver is showing a similar degree of undervaluation. It is currently trading at a ratio of around 70:1, while the historical average over the past 150 years is below 30:1, and the natural ratio is approximately 15:1. This points to a potential 2.5x increase just to reach the historical mean — and that’s assuming gold remains at its current price, which seems unlikely given the pace at which central banks are accumulating it. Adjusted for inflation, silver’s previous all-time high sits at around $200 per ounce. It is worth noting that this peak was driven largely by speculation, whereas today the market is experiencing a severe structural deficit. This suggests the potential for a far more sustainable and fundamentally supported rise — a dynamic that is already driving the strong performance of silver miners. Of course, nothing is ever certain in the markets, but these factors undoubtedly add another set of compelling arguments to the bull case. $SLV (iShares Silver Trust) $GLD (SPDR Gold) $VOO (Vanguard S&P 500 ETF) $GDX (VanEck Vectors Gold Miners ETF) $AG (First Majestic Silver Corp)