Coming Silver Squeeze? Why Silver Price At $250-$500 Is 'Entirely Possible'

(March 6, 2025 - Kitco Mining, Kitco News)

(Kitco News) - Silver prices have been manipulated for the past five decades, and a breakout with a price target of $250-$500 is "entirely possible," according to renowned investor and industry titan Eric Sprott, Chief Executive Officer, Eric Sprott Family Office.

Sprott is predicting a significant price increase due to a technical deficit where consumption exceeds mining production. "Silver is going to skyrocket," he told Kitco Mining on the sidelines of PDAC in Toronto, citing Michael Oliver's target of $250 and Don Durrett's target of $500.

"I can see both being entirely possible here because I know the targets on gold were like $8,000 to $10,000. Silver used to trade at 15-to-1 to gold," Sprott said.

He believes the current gold-silver ratio, which is around 90-to-1, is distorted due to manipulation and should contract significantly, potentially reaching 15-to-1 or even 7-to-1.

Sprott's interest in precious metals began in the late 1990s, driven by concerns over the NASDAQ's vulnerability. "I came to the conclusion that gold and silver would be the answer," Sprott said, noting his success in shorting the market while investing in gold and silver during the bear market.

Market vulnerabilities and investment strategy

Sprott expressed concerns about current market conditions, revealing that he is shorting the market. "When I look at the monetary policies we've had, the zero interest rates for whatever number of years, it's just so ridiculous," Sprott said. He also noted the potential impact of tariffs on the global economy, suggesting it could accelerate a bear market, which would benefit gold and silver.

Sprott described his investment policy as "stealing value," focusing on undervalued companies in the precious metals sector. He looks for companies with low valuations compared to their net asset value (NAV) and significant potential for growth. "I can find lots of stocks trading at one-tenth of NAV," Sprott explained, emphasizing his patient investment approach.

Sprott's exit strategy

Sprott said he typically does not have plans to sell when he buys a company. "Typically, when I buy, I don't have a plan to sell them. I have a plan to let them, uh, appreciate, and grow, and have someone buy them from me," he said.

Looking ahead, Sprott is confident about the precious metals space at the end of this year. "I'm sure gold will be well north of $3,000. And I would hope that silver will be north of $50," Sprott projected. He also anticipates that precious metals stocks could see substantial gains.