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.