"When an asset is hated, owning the physical metal is the cleanest way to be right. When an asset is loved, the physical metal starts to be an inefficient way to capture further upside."
"Institutional valuation models for silver producers are still using legacy price assumptions in the neighborhood of $45 an ounce. Silver currently trades near $80, even after a 35% correction from its January peak."
"When those models re-price to reality, the equities re-rate 50% or more on the adjustment alone - before any further move in the underlying metal."
Rule sold 75% to 80% of his physical silver despite a bullish outlook, indicating a strategic shift in the silver market. The parabolic price increase in 2025 changed market sentiment from negative to positive. Rule believes that mining equities now offer better leverage to silver prices than holding physical metal. Institutional models still undervalue silver producers, which could lead to significant re-ratings of equities as price assumptions adjust to current market realities.
Read at 24/7 Wall St.
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