The case for silver...13 Nov 2025 10:54
"The green infestation..." It's funny. I'm thinking the green revolution! So, there are many contrarian views on this bulletin board, which is healthy. But, I can never understand posters that seem to want a company to fail. That's not, for me, my investment strategy. What I look for are companies that have, perhaps, underperformed, but that may finally have the chance to turn things around. UFO is one such company. And forget iron ore, PGMs for a moment. Silver is in play, and UFO's interest in WCE could be what transforms the company, and by extension shareholder fortunes.
The case for silver is multi-faceted. It goes something like:
1) The silver to gold ratio = 80-1. The historical average = 15-1. You do the math.
2) Silver is now on the US' critical minerals list. It's therefore something of a national security risk, which means that silver needs to be acquired by the US government, maybe for military purposes, who knows. But they're not alone. China, Russia, Saudi Arabia are all buying silver.
3) Demand in India is through the roof, in part because the RBI are now accepting silver as collateral against loans. The RBI is accepting silver as collateral on a 10-1 ratio with gold. At current prices, with gold at $4,000 per ounce, this would suggest a silver price of $400 per ounce.
4) There continues to be a supply deficit - supply is roughly 800 million ounces per year, but demand is over 1 billion ounces per year.
5) Industrial demand continues to soar, whilst silver bullion as an investment vehicle is attracting new interest from those who feel they've missed the 'gold boat'. So, silver as a monetary metal is once again being factored in.
There are doubtless more compelling reasons to suggest that silver is, even at today's prices, grossly undervalued. UFO, with their interest in WCE, could well be about to benefit from this perfect storm which is the commodity boom. We shall see.
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