Learn more about the transformative transaction with First Majestic Silver
Learn more about the transformative transaction with First Majestic Silver

About Silver

WE BELIEVE IN THE STRENGTH, VERSATILITY AND MARKET OPPORTUNITY OF SILVER.

The case for silver is strong. Historically, silver has been viewed as an attractive hedge against inflation and a decrease in the value of the U.S. dollar in times of economic uncertainty. This focus remains true today in the face of political unrest and trade uncertainties around the world. However, silver is also a consumable industrial material due to its distinctive physical and chemical properties that make it an essential and difficult-to-substitute component in several industrial applications.

Today, industrial demand for silver continues to increase, driven by new emerging applications such as solar energy, medical applications, and water purification, which we believe will enhance the demand fundamentals of silver.

Despite this strong investment and industrial demand, the universe of primary silver companies is relatively small, which limits investor options for silver exposure. Gatos Silver represents an opportunity for investors to gain exposure to a primary silver company with a world-class asset in a highly favorable mining jurisdiction.

test

“The major monetary metal in history is silver, not gold.”

— Milton Friedman, Nobel Prize-winning American economist

Why Silver

Dual Appeal

As an industrial and monetary asset, silver is a traditional safe-haven investment but is also used in a host of critical industrial applications. As such, silver has performed well in both recessionary and recovery markets.

Unique Characteristics

Excellent electrical and thermal conductivity, antimicrobial, reflective, ductile, and malleable properties make silver an essential raw material of the 21st-century economy.

Strong Fabrication Demand

Spurred by broad uses in numerous current, emerging, and future applications, silver fabrication demand surged approximately 13% between 1998 and 2018. Industrial demand has propelled this increase, registering over a ~110% gain between 1998 and 2018.

Hard Currency

A store of monetary value and currency for 4,000 years, silver has returned to its roots as a currency with no default risk in an environment of debt-backed volatile currencies and sovereign bond risk.

Rising Tide

GSI believes that interest in silver will be driven by current financial, political, technological, and macroeconomic developments. Silver investment, jewelry, and consumer electronics demand stand to benefit from the world’s expanding middle class. Investments in energy, medical, and technology sectors also have the potential to revalue silver.

Rarer than Commonly Understood

Production is leveling off and new mine supply is stagnant. With only 26% of the total silver output from primary mine production, the expected rise in price will not be countered by a rise in mine supply. In addition, silver is consumable: Used in a myriad of industrial applications, ~50% of the world’s refined silver has been “consumed” or lost and is not recoverable.