The Silver Story After the Selloff

Silver and gold cratered last week after the U.S. Federal Reserve leadership surprise.

In this issue of Beyond the Headlines, here’s what’s happening and what it means:

➤ The Fed nominee “shock” may (or may not) have triggered a selloff.

➤ The “Commodity Supply Shortfall” backdrop storyline we follow hasn’t changed.

➤ Today’s breakdown shows why selloffs like this tend to create mispricing and how the right stocks can benefit from that mismatch.

Let’s jump right in.

What’s Happening

President Donald Trump plans to nominate former Federal Reserve governor Kevin Warsh as the next Fed chair, a move that surprised markets given Warsh’s reputation as a monetary hawk.

Warsh served during the financial crisis, criticized quantitative easing, and warned it could distort markets. That was jarring for investors who expected the president to choose a Fed chair who would pliantly cut interest rates.

The announcement triggered a sharp selloff in precious metals, with gold and silver suffering their worst one‑day declines since 1987.

Why It Matters

Gold and silver prices had already run far and fast over the past year, setting the stage for profit taking even before the Fed news hit.

The Warsh nomination simply accelerated a reset that was already brewing, and while a sharp pullback is uncomfortable, it’s often how markets reset after extended moves.

Investing Takeaway

With all the news about silver’s price drop, what we didn’t see at Stock Picker’s Corner (SPC) was a structural issue in why silver prices were down.

We didn’t see a change in our original thesis when we first added it to our Model Portfolio at around $27.

And, most importantly, we didn’t see a reason to panic.

Instead, what we saw was a favorable reset of the risk/reward opportunities for silver’s long-term price horizon that lets us tighten our investing thesis even further.

That’s because:

✅ Previous underinvestment in mining means new capacity isn’t happening fast enough. Last year was the fifth in a row where demand was expected to exceed supply.

✅ Industrial demand is not slowing. Silver is critical to the systems that power, connect, cool and protect data centers. It’s also used in autonomous vehicles through camera systems, chargers, circuit breakers, and more.

✅ And uncertainty, a declining dollar and geopolitical tensions aren’t going away, keeping silver as a hedge against it all.

As silver’s demand picture strengthens and volatility reshapes the risk/reward dynamic, this metal’s bullish outlook quietly becomes more powerful.

Some companies are saddled with rising operating costs, permitting delays, and capital-intensive mine development. Others are structured to benefit from higher silver prices without taking on those risks.

That distinction is why we have been focusing on a different type of silver company.

This business does not operate mines. Instead, it provides financing to miners in exchange for the right to purchase a portion of future silver production at predetermined and discounted prices. That structure provides direct exposure to silver prices appreciating over the long term while avoiding the operational challenges that weigh on traditional mining businesses.

We explain why this streaming company is positioned to benefit from silver’s next phase and why its structure matters more now than it did at higher prices.

Here is the stock and why we are watching it closely.

Continue Reading