➡ The production of gold and silver is declining while demand is increasing. Silver’s recent volatile behavior is not a sign of exhaustion, but the start of a larger trend. Dolly Varden Silver, a company with a high-grade silver deposit, is merging with Contango Ore, a high-grade gold producer. This merger, along with the elimination of hedged gold, is expected to significantly boost the company’s value and provide investors with exposure to both silver and gold.
➡ Silver News Daily is hosting a giveaway of 10 ounces of silver for active members of their Telegram group. The article discusses the shifting gold-silver ratio, which measures how many ounces of silver it takes to buy one ounce of gold. Recently, this ratio has been lower than expected, indicating that silver is outperforming gold. This, along with a strong demand for silver and a decrease in supply, suggests that the value of silver could increase significantly in the future.
➡ The silver market has been in deficit for several years, meaning more silver is being used than produced. This is due to high demand from industries, investors, and manufacturers. Despite this, the price of silver has remained stable, indicating a strong market. The demand for silver is expected to continue due to its use in industries and as a safe investment during times of geopolitical stress.
➡ The article suggests that gold and silver are becoming less tied to short-term currency changes and more of a hedge against monetary issues. If gold continues to perform well, it could reach up to $6,900, which would also boost silver prices. Even if interest rates stay high, silver has shown resilience and could still increase in value. The article also discusses the potential for silver to reach $1,000, but this would require a significant revaluation of gold and a collapse of the gold-silver ratio beyond historical norms.
➡ Always talk to an expert before making choices about your money.

And the reality is, if you look at the big gold producers from a supply side, we’ve seen peak production in both gold and silver. So the biggest gold companies in the world today, they’re not producing more metal than they were historically. Production’s declining at a time where demand is, is right. You’re watching Silver News daily. Subscribe for more. Silver just made one of the most aggressive, confusing and explosive moves we’ve seen in years. And almost everyone is misreading it. The headlines call it volatility. The analysts call it consolidation. The skeptics say the rally is exhausted. But Sean Konkun is looking at this very differently.

He’s not seeing chaos, he’s seeing ignition. Because when silver starts behaving like this, when it surges parabolically, pulls back violently, then regains its footing above critical levels, that’s not the end of a move. That’s the beginning of something much larger. Think about where we are right now. Silver rips higher, smashes through key resistance, shocks the market. Then instead of collapsing back into irrelevance, it stabilizes, it holds structure, it finds support. In the mid to high 80s, buyers step in aggressively on dips options. Markets are leaning heavily toward upside calls. The gold silver ratio is collapsing below long term assumptions.

These are not the characteristics of a tired market. These are the fingerprints of accumulation before expansion. And here’s where it gets uncomfortable. Because if this is not just another spike, if this is the early phase of a structural revaluation, then we are not talking about $5 or $10 higher. We are talking about the kind of move that resets how the world prices silver entirely. The kind of move that doesn’t stop at $100. The kind of move that forces people to ask a question they never thought they’d have to consider. Could Silver actually be heading toward $1,000 in this cycle? It sounds insane.

It sounds exaggerated. It sounds like the kind of prediction people laugh at right before the breakout happens. But when you break down what’s happening beneath the surface, when you strip away the noise and study the positioning, the deficits, the macro backdrop, and the historic behavior of Silver during monetary stress, this rally starts to look less like a spike and more like the opening chapter of something historic. So the real question isn’t whether Silver’s move has been crazy. The real question is whether this crazy move is the first tremor before the next massive silver super cycle begins.

Is not familiar with the company, just for any new viewers or for those who are looking for a refresher. So Dolly Varden silver is in BC’s prolific Golden Triangle. So we’re in northwest British Columbia in a long established mining camp. This is a safe jurisdiction. We’ve got predominantly a high grade silver deposit. So we’ve got about 64 times more silver than we do gold currently. So we’ve got 64 million ounces of silver in a 43101 compliant estimate. We also have 1 million ounce of gold. Now we will be putting out a new estimate sometime in April or May where we expect to go to as much as 100 million ounces of silver complemented by million ounces of gold.

So we’ve been on a journey for the last six years consolidating a total of five past producing high grade silver mines. There are some drill results that we’ve posted recently from our more gold centric Homestake deposit where we drilled over 40 meters of almost 5 grams per ton. And so Homestake is demonstrating not only it does it hold together, is it continuous, but we’re also showing expansion potential by stepping away from the main deposit and showing the opportunity to grow. So those are where the drill results are coming. Now you referenced a merger that the company announced back on December 8th.

And why that’s important is we are moving from high grade silver Explorer and we are merging with a high grade gold producer. And that high grade gold producer is a company called Contango Ore. Contango is operating the Moncho mine in Alaska where last year they generated US$102 million of free cash flow. And so the Moncho is in production. They have two other high grade gold systems that they’re advancing, including the Lucky Shot. The Lucky Shot is scheduled to be in production by 2028. So it’s a gold producer that is currently producing about 60,000 ounces on average.

But with the introduction of lucky shot will 100,000 ounces. And if we look out further towards the end of the decade, 2029, 2030, the Johnson Track could contribute an additional 100,000 ounces. So Contango’s got a wonderful business. It’s a business that is rooted in cash flow. Let’s slow this down and really dissect these so called crazy moves. Because when you strip away the emotion or what you’re actually looking at is a market behaving with intent. Silver didn’t just drift higher, it went parabolic at the start of the year. It accelerated aggressively, blew through prior resistance and forced momentum traders to chase.

That kind of vertical. Expansion doesn’t happen in sleepy markets. It happens when positioning is offside. And demand overwhelms supply. Then came the pullback. Sharp, violent, designed to shake out the late buyers. And this is where most people made the mistake. They saw red candles and assumed the rally was over. But look closer at what actually happened. Silver didn’t collapse back to irrelevance. It didn’t retrace the entire move. Instead it began stabilizing. It found strong footing around the seventy dollar zone. Initially where buyers stepped in aggressively during the first leg down. Then structure started to form. Higher support developed around $86.

That level held not once, but repeatedly. That’s not random. That’s a market building a technical base. Technically, momentum never fully broke. The price stayed above the 50 day exponential moving average relative strength indicators began flashing positive divergence after dipping into oversold territory. That’s classic bullish behavior during consolidation. It signals exhaustion on the downside while buyers quietly accumulate. And this is exactly the kind of price discovery phase analysts have been describing. Not a crash, not a top, a reorganization. Now layer in investor behavior. Retail flows didn’t panic. There wasn’t a mass exodus from silver products. In fact, year to date flows have remained positive around the 70 to $80 range.

Two way trading intensified, but the broader tone remained constructive. That matters because in true tops you see euphoria flip into fear. Here you saw volatility met with composure. And here’s the key point Sean is emphasizing. In the early stages of powerful precious metals cycles, silver often lags. Gold then suddenly overcompensates. We already saw gold make historic advances. What happened next? White Metals resumed outperforming gold. The gold silver ratio compressed aggressively toward 57, breaking below long term assumptions. That deviation from the historical template is not normal behavior. It suggests a structural shift rather than a temporary spike.

So when people call this move crazy, they’re only looking at the surface. Underneath the market is doing something far more important. It’s transitioning from acceleration to foundation. And foundations are what? Major breakouts are built on the business that has a pipeline of growth to 200,000 ounces. And they were looking for beyond a five year growth plan. And that’s why they’re happy to merge with Dolly Varden. Giving their investors exposure to safe jurisdiction. High grade silver complemented with a million ounces of gold. And it’s timely that you have me on today because they’ve announced the closing of a $50 million financing.

And they had two of their larger supportive investors take the bulk or take all the financing. One took over $40 million and the other just under 10 million existing shareholders. Cornerstone Strategic investors. So when we go to merge and everything I’m talking about today, even though we’re a Canadian company, I’m referring to everything in US dollars on merger, we’ll have about $100 million in the bank and about $100 million of cash flow. And the company has very, very little debt under 15 million ounces. $15 million of debt and the use of proceeds. The reason a cash flowing business would go to the equity markets and raise an additional $50 million is there was some ounces that were hedged.

So there was some hedged production. And what Contango has done today is they’ve eliminated 15,000 ounces of hedge gold. So before today we had about 42,000 ounces that we didn’t needed to deliver into a hedge book. We’ve reduced that 26,000 ounces. So we’re on pace to be unhedged by the middle of the year. And that is going to be I think a step change for the company. One of the reasons I think the company’s valuation is where it is is because we’re not celebrating the spot gold price of $5,000. Well as we look into the back half of 2026 as an unhedged producer, but we have the potential to be.

So I think that’s a game changer for the company. I think this merger is a game changer. You know, enhanced liquidity, just a larger pipeline. So you know, I, you know, Donegan, what I’m trying to do is I’m trying to create a vehicle giving investors exposure to silver and gold. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver, not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything.

Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News daily on YouTube. Turn on the notification Bell comment 10 ounce giveaway on three separate videos. Be an active member of the Telegram group and say hi. Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early, stay active. Now this is where things get even more interesting. Because when the gold silver ratio starts breaking historical patterns, it’s not just a technical curiosity.

It’s a signal that something deeper is shifting inside the monetary system itself. For years Analysts have operated within a comfortable framework. Silver outperforms gold, then partially retraces. The ratio oscillates within a predictable range by long term assumptions. That range was expected to sit somewhere between 60 and 65 over the next couple of years. But what just happened? The ratio didn’t respect that neat template. It compressed to 57. That’s not a minor deviation, that’s a statement. Understand what this means? The gold silver ratio measures how many ounces of silver it takes to buy one ounce of gold.

When that number falls, silver is outperforming. And historically, once silver starts outperforming in a sustained way, it doesn’t do it gently, it accelerates. Because silver is a thinner, more volatile market, capital flows hit it harder, momentum compounds faster moves overshoot. And here’s the critical detail. This recent compression isn’t happening in a vacuum. It’s occurring while gold itself is strengthening against the US dollar again, even flipping back into outperformance based on its trailing beta. That matters because if gold resumes the kind of dollar outperformance we saw in the last two years, projections aren’t talking about small upside.

They’re talking about $6,000 gold as a base case, even $6,900 in a more aggressive scenario. Now pause and think about the math. If gold were trading at $6,000 and the ratio sat at 60, that alone implies $100 silver. That’s not hype, that’s arithmetic. But what if the ratio doesn’t stop at 60? What if it compresses to 50 or 40? In past mania phases, it has overshot dramatically. And if gold were pushing towards $6,900 while the ratio tightened aggressively, the silver price implications become exponentially larger. This is why the break below long term ratio assumptions is so important.

It suggests the market is no longer following the old script. The tidy historical template is being defied. And when templates break in financial markets, it’s usually because a new regime is forming. The question is no longer whether silver can reach $100 under current forecasts. That already sits within mainstream projections based on a ratio of 60. The real question is what happens if the ratio continues collapsing in a genuine monetary stress cycle. Because if that compression accelerates while gold moves into a full scale super cycle, silver doesn’t just ris, it multiplies. Of being a pre cash flow business is you’re always at the mercy of the market for more funding.

As you’re trying to move your project forward, you know you’re looking at dilution. And what our business was Built on was, it was built on growth. You know, I started the business, I came into Dolly Varden in 2020. The price of silver was $16. And the idea was to try to give investors exposure to silver. And at the time, despite the price of silver being $16, the price of silver ounces in the ground was a mere 75 cents per ounce. So there was a deep discount between the spot price and, and the value companies were given for the in situ or in the ground value.

So I thought it was a good time. If we could create a company that identified a large mineral inventory, those pennies per ounce could turn into dollars per ounce. And that’s what’s happened. The company’s grown from $20 million to $600 million. As we’ve grown the mineral inventory, we’ve also found significant gold resources that complement the silver. And as the silver price has appreciated, so too has our valuation. But it’s now time, Donegan, to start thinking about the project more as a developer and a future producer than it is as an explorer. So again, by combining with a cash flowing entity, I’m not at the mercy of the market to bring in the capital to develop, permit, construct and ultimately produce.

But the ratio is only part of the story. What’s happening in the derivatives market right now is even more revealing. And this is where the signals start to get extreme. The three month silver risk reversal has climbed to its highest level of the year and not just marginally higher. It has pushed to a new 20 year high. Let that sink in two decades. That means the skew in the options market is heavily tilted toward calls toward upside protection, toward positioning for higher prices. Institutions are not paying up for downside insurance. They are paying up for exposure to a breakout.

And sophisticated money does not position like that casually. When you see risk reversals stretch to extremes, it tells you that traders are willing to spend real capital to secure upside convexity. They are preparing for acceleration. They are bracing for an expansion phase. This is not retail driven enthusiasm. This is structural positioning. Now combine that with what’s happening in Shanghai after the Lunar New Year, M1 to M2, backwardation in silver resumed. That may sound technical, but the implication is simple. Backwardation signals tightness in the physical market. It reflects immediate demand outweighing available supply in the near term.

And what’s critical here is that those backwardation levels remain elevated compared to January. In other words, the physical tightness didn’t fade away after the initial surge. It persisted. So now you have three powerful layers stacking on top of each Other price structure holding above key technical support, A collapsing gold silver ratio defying historical norms and derivatives positioning screaming upside risk. While physical market signals point to tightening conditions. This is why forecasts that once seemed ambitious are starting to look conservative. When analysts already see upside risk to $100 based purely on a 60 ratio assumption, and yet the ratio is trading below that range, you have to ask whether the market is front running something bigger.

Because when physical tightness meets aggressive upside positioning, the result is often non linear. Silver doesn’t grind higher in those environments. It gaps, it spikes, it forces repricing events. And if this setup continues building pressure beneath the surface, the next move won’t look gradual, it will look violent. We’re in an unprecedented time where major financial firms, so these are Wall street based firms, London based firms, firms in the largest financial centers of the world, are now recommending to their clients significant weighting to gold and away from the traditional bond and equity portfol. And as Rick Rule points out, right now historically, gold and silver are unowned relative to how they have historically been owned.

Just even looking at the last hundred year average. So less than half of 1% of financial instruments are in gold and silver. Historically that number’s been 2% and you know, for many investors it’s been even higher. But if we see that move from less, you know, half a percent to 1%, you know, the, the result of that is significantly higher gold prices. So some of the things that I look at from my longer term project projections for gold, again it being in the mining business, we have to be far more conservative. So some of the numbers that we’re looking at from a long term is we’re looking at building projects based on $3,000 gold.

Okay. In the context of is this next project going to be economic? Because we’ve got to use conservative long term estimates when we build projects. But if we believe that the gold price was going to be a mere through $3,200, we would not have taken the action we took today, which is retiring 15,000 ounces. That’s a $45 million action item. A $45 million item. So we are very bullish on gold and silver. And for all the reasons that I think you’ve been educating your viewers about, whether it’s some structural issues with the debt, the deficits, a return to sound money.

And the reality is if you look at the big gold producers from a supply side, we’ve seen peak production in both gold and silver. So the biggest gold companies in the world today, they’re not producing more metal than they were historically. So despite more humans being on the planet, despite more debt levels, we’re not producing more gold and silver. And so production’s declining at a time where demand is rising. And that’s why I think we’ve seen the price surge like we have. And it’s finally a profitable time that’s incentivizing gold and silver miners to start investing in things like development and thinking about exploration.

Now we move beneath the charts and into the structural core of this market. Because while price action and derivatives positioning tell you what traders are doing, supply tells you what’s physically possible. And this is where silver’s story becomes even more powerful. For several consecutive years, the silver market has been running in deficit. That means more silver is being consumed than produced, not theoretically, not projected, actually consumed. Industrial users, investors, manufacturers are drawing down available supply faster than miners can replenish it. And mining production isn’t something you can flip on overnight. It takes years to bring new projects online, permitting, financing, development, geopolitical risk.

Supply is rigid, demand is not. Now, remember what happened during the recent pullback when silver dropped sharply. There was no mass capitulation, there was no panic liquidation. Instead, buyers stepped in early, particularly around the $70 level. That zone became a battlefield with two way trading intensifying. But structurally, flows remained positive year to date. That’s critical because it tells you this isn’t a speculative bubble built on weak hands. It’s a market with underlying conviction. Analysts have described this phase as base building, a new floor forming between $70 and $80. And that range matters because if that zone becomes the new structural support, then the entire valuation of silver has shifted upward.

Markets that build higher bases during consolidation are not topping. They are preparing for expansion. And this is where the supply deficit thesis intersects with investor psychology. In previous cycles, silver rallies were often driven primarily by monetary demand. This time you have something more durable underneath it. Industrial demand remains strong. Investment demand reactivates during geopolitical stress. Safe haven flows increase when real yields wobble. That combination creates persistent pressure. Think about the mechanics. If the market is already in deficit during a consolidation phase, what happens when investment demand re accelerates? What happens when the options market positioning translates into actual spot buying? There isn’t a warehouse of excess silver waiting to absorb it.

There isn’t a flood of new supply coming online next quarter. This is why the consolidation between $70 and $80 isn’t weakness. It’s reorganization above a structurally higher plateau. And if this plateau holds while deficits persist, then every New wave of demand doesn’t just lift price incrementally, it forces repricing and repricing. Events in silver have never been gentle. So what you have to appreciate is a lot of the low hanging fruit has been picked and you know, we’re having to go deeper and deeper into the earth’s crust. We’re having to go further afoot into jurisdictions that may or may not be favorable to mining.

We’re at a time where socially communities are asking themselves, do we want this project in my backyard? And so the challenges that a mining company faces today are significant. If we look back historically, there’s something that’s famously referred to as the Lassonde curve, named after legendary mine finance here at company builder Pierre Lassonde. And what the Lassonde curve describes is the exploration high that a company experiences. That’s if you’re lucky enough to make a discovery. But what happens for that company is they go through what’s described the developing low. And typically historically that was a two to three year period when you were doing things like studies, permitting, moving towards a construction decision, building and ultimately going into production.

What’s happened is that two or three year period is now going to seven years. And that’s a optimistic and that’s using a global average in some places it’s 15, 20 years in that permitting timeline. So my point here is it’s extremely capital intensive and there’s very, very long timelines to get new supply to market. Now this is where silver separates itself from every other commodity on the board. Because it doesn’t just sit in one demand category. It lives in two powerful worlds at the same time. It is both an industrial necessity and a monetary refuge. And when those two demand engines begin firing together, the effect isn’t incremental, it’s explosive.

On one side you have structural industrial consumption that isn’t slowing down. Solar expansion continues its scale. Electrification of transport is accelerating globally. Data infrastructure, grid upgrades, advanced electronics, medical applications, defense systems, all of it relies on silver’s unmatched conductivity and reflectivity. There is no perfect substitute that can replace silver at scale without sacrificing efficiency. That means industrial demand is sticky. It doesn’t disappear because price moves higher. In many cases, it absorbs the higher price and passes it along the value chain. But now layer on the second engine. Safe haven demand. Geopolitical tensions are rising, not falling.

De dollarization trends are gaining traction among major economies. Central banks have been aggressively accumulating gold. Real assets are quietly reentering institutional portfolios and when confidence in fiat systems starts to wobble, investors don’t just look at gold. They look at silver as leveraged monetary exposure. This dual demand structure is rare. Most commodities depend heavily on growth cycles. If the economy slows, demand falls. But silver behaves differently. If growth slows, industrial demand may soften slightly, yet monetary demand often increases. If inflation rises, investors seek hard assets. If geopolitical risk escalates, capital flows into tangible stores of value. Silver benefits in multiple macro scenarios.

And this is why this cycle has the potential to look very different from previous ones. In past rallies, silver often needed gold to drag it higher. This time, industrial deficits were already building before the monetary acceleration phase even began. So when safe haven flows return aggressively, they’re landing on top of an already tight physical market. That’s when pressure compounds. Imagine a market running structural deficits, building a higher base between $70 and $80, holding technical support above $86. While options markets are skewed heavily to the upside, and geopolitical stress continues simmering. That isn’t a fragile rally. That’s a layered setup.

And when both engines ignite at full force, silver doesn’t move in straight lines. It expands in waves. Fast, violent, hard to catch. The kind of waves that make people look back and say the warning signs were obvious, but they didn’t recognize them in real time. One of the things that my company is doing in response to that is we’ve got an innovative process that we refer to as dso, which is the direct shipping of ore. So our focus is on high grade projects where we don’t need to build a processing facility, we don’t need to go through the long, arduous, timely permitting process of tailings.

What we’re essentially doing is we’re putting rocks in a box and we’re shipping them to a processing facility. Well, you’ll, if you like that, you’ll really like this. We are literally putting rocks in a box. Knox. And we’re shipping them to Fort Knox. And Fort Knox is Kinross’s processing facility in Alaska. And so in the case of the Moncho mine, you know, we are putting these containers, and these are covered containers, okay, these shipping containers. So there’s no fugitive dust that is going into the atmosphere. This is safe, this is covered. So environmentally, the community celebrate it.

So we’re putting two of these containers on the back of a truck and we’re driving it to the processing facility. But whether you drive it on a truck, whether you put it on a rail line, or whether you float it on a barge, it’s the same principle and it’s a wonderful way for a very low capex and in a quick timeline to get that. And it only works on high grade deposits. So again if you look at our portfolio, it works and we’re doing all this done again we’re doing it in Alaska and we’re doing it in British Columbia.

So it’s, It’s a Canada U.S. solution. And you know, for me, if you look at some of the headlines recently in the market, jurisdiction matters. So not only is grade important, but the safety of these jurisdictions is very important to us. And if I’m an investor looking to get exposure to silver and gold, you know, Contango silver and gold and as we’re known right now, Dolly Varden silver and Contango Ore. Because the merger is set to complete around 26 March. So come April 1 this new entity will be up and trading under CTGO on the new NYSE American.

But investors can, can get exposure to Dolly Varden today at, you know, under symbol dv. And I think we’re building quite a rocket ship here. It’s only going to have 31 million shares out. We’ll have a lot of high grade silver, a lot of high grade gold. We have operations, we have a team that Rick Rule has supported. Whether it’s Rick Van Unhy. Now we arrive at the macro lever that could determine the speed of this entire move. The Federal Reserve real yields and the US Dollar. Because silver does not move in isolation, it reacts violently to shifts in monetary expectations.

For months markets have been wrestling with the same tension. On one hand, there were expectations of a more dovish rate cuts, liquidity, easing softer policy. On the other hand, resilient economic data and persistent inflation pressures have forced policymakers to keep the door open to tighter conditions that back and forth has created volatility across precious metals. But here’s what matters most. Silver has been consolidating through this uncertainty without breaking structure. Real yields are the heartbeat of precious metals. When real yields fall, the opportunity cost of holding non yielding assets like silver drops. Capital rotates when the dollar weakens.

Metals priced in dollars reprice upward. Recently gold has begun regaining outperformance versus the US dollar again based on its trailing beta. That shift is subtle, but it’s critical. It signals that gold is starting to decouple from short term currency fluctuations and trade more as a structural monetary hedge. And if gold resumes the kind of outperformance we witnessed over the past two years, projections expand dramatically. Base forecasts already discuss $6,000 gold. More aggressive scenarios extend towards $6,900. Now think about that in context of everything we’ve discussed. A tightening gold silver ratio, structural silver deficits, extreme upside skew in options markets.

If gold accelerates under a dovish pivot or a dollar weakening cycle, silver historically doesn’t just follow, it amplifies. But here’s the twist. Even if the Fed remains cautious and rates stay elevated for longer, silver has already demonstrated resilience. It has held above key support levels, built a higher base, and maintained positive investor flows despite policy uncertainty. That suggests underlying demand strength. It suggests the market isn’t solely dependent on immediate rate cuts to sustain momentum. So whether the catalyst comes from falling real yields, a weakening dollar, renewed liquidity injections, or even a policy mistake that destabilizes markets, silver sits in a position of leverage.

It is coiled. And if monetary policy becomes the spark, the expansion phase won’t look gradual. It will look like repricing metal miners globally. They’ve operated all across the globe. They’ve been operating in Alaska for decades. So the biggest risk or challenge that investors face with a miner is the operational risk. And so working with a company like Kinross, particularly combined, we’re about a $1 billion market cap company. We’re a small company in the sphere of capital markets. So an even bigger risk is on a junior miner. And so having that processing facility run by Kinross is such a great strength in that you’re not taking on operator risk.

You’re working with one of the biggest and best gold miners on planet Earth. And why are materials important to that miner is they’ve got a project that is a very, very low grade deposit. So they celebrate. So they’re producing sub 1 gram per ton. So whereas our deposit is 8 grams per ton. And so when it arrives, the way it’s run through and batched and processed is in the middle month of every quarter, there’s about 200,000 tons of ore that are processed which generate about, on average about 15,000 ounces that are contributed to our company. You know, on an annual basis, it works out to about 200,000 ounces a year of production just from that Manchot deposit, which we own 30%, which attributes to about 60,000 ounces a year, which generated last year.

100. And now we need to talk about the number that makes people uncomfortable. $100 is already within the realm of mainstream projections. If gold reaches $6,000 and the ratio simply sits at 60, that’s arithmetic. That’s not speculation. But Sean’s thesis doesn’t stop at arithmetic. It asks what happens in an overshoot phase. Because silver does not behave politely in bull markets, it doesn’t respect conservative ratio models when momentum takes control. Historically, when true monetary stress emerges, the gold silver ratio doesn’t just compress to its average, it overshoots. In 1980, the ratio collapsed toward the low 30s. In previous mania phases, it has traded well below long term norms.

Silver’s thinner market structure means capital inflows create exponential rather than linear moves. So let’s run a scenario. If gold reaches $6,900 and the ratio compresses to 50, you’re already looking at roughly $138 silver. If the ratio tightens to 40, that’s over $170. At 30, you’re pushing above $230. And that’s without assuming extreme conditions. That’s simply applying historical ratio behavior to elevated gold prices. Now, here’s where the pathway toward $1,000 becomes thinkable. Not probable tomorrow, but conceivable in a structural reset. For silver to approach $1,000, you would need two forces converging a dramatic revaluation of gold in response to systemic monetary stress and a ratio collapse well beyond historical norms, driven by physical tightness and speculative acceleration.

Imagine a world where gold is not $6,000, but significantly higher because confidence in fiat systems deteriorates faster than expected. Imagine persistent deficits in silver colliding with explosive investment demand. Imagine options market positioning forcing hedging flows into spot markets. In that kind of environment, price discovery becomes chaotic, it becomes non linear, and silver, because of its size, becomes the most volatile pressure valve in the entire precious metals complex. This is not about saying silver is going to $1,000 next quarter. It’s about understanding how markets behave when structural deficits, monetary instability and capital flows converge. Silver doesn’t grind to extreme levels.

Slowly it gaps there, it reprices violently. And if this current phase is the foundation, if this consolidation above $70 and support above $86 is the base of a new regime, then the pathway isn’t fantasy, it’s a sequence. Gold accelerates, the ratio compresses, physical tightness intensifies, capital floods in, and what once sounded absurd starts entering serious conversations. That’s how exponential moves are born. For a few years there, 2022, 2023, I was pounding my fist on the table and I was saying, go out and buy silver. You know, silver was $20 in, in 2023, in September, in 2022, it was $18.

And those calls have aged really, really well, and so here I am. You know, the silver price is, is a significantly higher today, three times higher. And it’s been, it’s been over $1 recently. I guess the conviction I have today is in the miners. The miners have not priced in the recent, as you described, hockey stick like movement in both the silver and gold. How appropriate for a Canadian company. Go ahead. Yeah, I was wondering if you’re using that example just for dolly. But anyways, no, so, so my point here is the market like the stock market traditionally looks six months ahead in terms of, you know, they’re forward looking, you know, on, on, on, on your guidance in the resource sector we do things a little bit differently.

You know, we’re looking at three year trailing prices. You know, if we look at the last round of earnings that came out, they were Q3 earnings. So we’re, we’re looking at a market in the rear view mirror and where prices were were around $3,500 gold and about $35 silver. And I think what’s going to be really exciting is in the coming week as earnings hit from the year end and as we start to see those elevated prices and how they translate and what your viewers should appreciate is a silver miner, for instance, that was selling their product in April of last year for $25 and their all in cost were 20.

So they were making $5 on every ounce they were producing. If you multiply that by 10 million ounces, that’s a $50 million business. But if you multiply that by $85, that’s a $650 million cash flow, that’s a 1,200% increase in the profitability of the business. And that’s where the miners afford a lot of leverage and a lot of opportunities. Just so, just for anyone who feels like, oh I wish I bought more silver at 25, 30, 40 or $50 or I wish I bought more gold when it was two or three thousand dollars an ounce. The time machine opportunity you have is to buy the miners who haven’t quite moved yet.

So when you step back and connect every layer of this discussion, the picture becomes impossible to ignore. Silver’s so called crazy moves were not random volatility. They were the early tremors of structural change. We’ve seen parabolic expansion followed by disciplined consolidation above higher support. We’ve seen buyers aggressively defend the 70 to $80 zone. We’ve seen price stability above $86 while momentum resets. That is not exhaustion, that is foundation building. At the same time, the gold silver ratio has broken below long term assumptions. Compressing toward 57 and defying the old template. The options market is flashing a 20 year extreme in upside skew, signaling that Sirius Capital is positioning for expansion, not collapse.

Physical market signals like backwardation are pointing to tightness. Structural supply deficits persist. Industrial demand remains for firm safe haven. Flows are quietly strengthening as geopolitical tensions and de dollarization trends build in the background. Then you add the macro layer. Gold regaining strength against the dollar. Real yield, sensitivity coiling beneath the surface. The possibility of gold reaching $6,000 or even $6,900 under renewed monetary stress. And when gold accelerates in that kind of environment, silver historically doesn’t just participate, it multiplies. That’s the pathway, not fantasy, not hype sequence. Gold moves, the ratio compresses, physical tightness intensifies, capital floods into a relatively small market.

Options positioning forces hedging flows and silver transitions from consolidation to repricing. First, $100 enters the mainstream conversation. Then levels that once sounded absurd begin to feel less impossible. Could it reach $1,000? That depends on the severity of the monetary reset and the magnitude of ratio compression. But what is clear right now is this. The groundwork for a historic rally is forming. And if this truly is the beginning of the next major silver super cycle, the biggest mistake investors can make is dismissing these early signals as noise. If you want to stay ahead of what’s unfolding in the silver market, make sure you subscribe to the channel so you don’t miss the next breakdown.

And remember, this is not financial advice, and you should always speak to a professional before making any financial decisions.
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