Sprott is a Toronto-headquartered asset manager specializing in precious metals and critical materials (NYSE/TSX: SII), tracing its roots to Sprott Securities founded by Eric Sprott in 1981 and now led by CEO Whitney George. It runs physical gold, silver and uranium trusts, ETFs, active strategies and resource lending, with about $65bn in AUM. The Insights column carries monthly commentaries and white papers on uranium, gold, silver, copper and critical materials by Paul Wong, Jacob White and John Hathaway (ex-Tocqueville gold manager) — note the house's structurally bullish commodity stance, as it sells the corresponding trusts and ETFs.
This report explains why silver is surging (up 25% in 2025, breaking above $35/oz). Key drivers: seven years of supply deficits (mines aren't producing enough), growing industrial demand (especially solar panels), and rising investor interest (silver ETFs are buying heavily). Silver also looks cheap compared to gold—the gold-to-silver ratio is 91, far above the historical average of 67. Available inventories are shrinking, so even a small demand increase could trigger a 'silver squeeze' (a sudden price spike). Historically, silver tends to rise about twice as much as gold in precious metal bull markets. Worth a read if you're curious about a potential long-term opportunity.
Sprott's report indicates that the silver bull market gained momentum in 2025, with year-to-date gains of nearly 25%, breaking through $35 per ounce and reaching approximately $38 per ounce at the time of writing, approaching the 2011 high of $48 and the 1980 all-time high of $49. The core thesis is
This chapter focuses on the strong performance of the silver market in the first half of 2025, analyzing the drivers behind its breakout above the key resistance level of $35 per ounce and a year-to-date gain of nearly 25%. The report argues that a structural supply deficit, growth in industrial demand, and a resurgence of investor interest have jointly fueled this silver bull market.
The report's core investment thesis is that silver is in the early stages of a structural bull market, with strong support from its dual nature (monetary asset + industrial commodity). Counterintuitive judgments include: 1) Silver remains undervalued relative to gold, with the current gold-to-silver ratio of 91 far above the historical average of 67; 2) Free-trading inventory has been significantly reduced, meaning even a modest uptick in demand could trigger a "silver squeeze"-style price surge; 3) In precious metals bull markets, silver's average gain is roughly twice that of gold.
1. Persistent Supply Contraction
2. Structural Growth in Industrial Demand
3. Investment Demand as a Variable
4. Valuation Comparison
| Indicator | Current Value | Historical Average |
|---|---|---|
| Gold-to-Silver Ratio | 91 | 67 |
| Gold Mine/Silver Mine Production Ratio | 7:1 | - |
5. Historical Performance