The Precious Metals Reset

Why the Pullback in Silver, Gold and Mining Stocks May Be Creating One of the Best Buying Opportunities of 2026

Since the early-May highs, both precious metals and mining equities have experienced a significant correction.
Silver has retreated sharply from its peak.
Gold has pulled back from record levels.
Silver miners and gold miners have fallen even more than the underlying metals.
To many investors, this appears bearish.
For long-term investors, (including us) it represents:
A rare opportunity to accumulate strategic assets while the long-term thesis remains intact.
The critical observation is this:
The prices have corrected. The fundamentals largely have not.
In fact, many of the drivers supporting both gold and silver today appear stronger than they were a year ago:
Persistent silver supply deficits
AI and electrification demand growth
Continued central-bank gold buying
Geopolitical uncertainty
Sovereign debt concerns
Currency diversification away from the U.S. dollar
Physical metal accumulation by investors and institutions
The result is a compelling setup for investors willing to look beyond the next quarter.

Why Precious Metals Matter More Than Ever

Historically investors separated precious metals into two camps:

Today that distinction is increasingly blurred.
Both metals are becoming strategic assets.
Gold is regaining importance as:
a reserve asset
a geopolitical hedge
a currency diversification tool
an inflation hedge
Silver is becoming increasingly critical to:
AI infrastructure
robotics
semiconductors
electrical grids
EVs
aerospace
defense technologies
Together, gold and silver now form what may be the world's most important
hard-asset combination.

Gold: The World's Ultimate Reserve Asset

Gold's investment case has strengthened significantly over the last several years.
Central banks continue to accumulate gold despite record prices.
The World Gold Council reported estimated central-bank purchases of 244 tonnes during Q1 2026, exceeding both the previous quarter and the five-year average.
A recent survey found that a record 45% of central banks expect to increase their gold holdings over the next year.
This matters because central banks represent:

They are not trading.
They are allocating reserves.
Their continued purchases suggest that gold's strategic importance is increasing rather than declining.

Silver: The Technology Metal

Silver may be even more interesting.
Unlike gold, silver has two major demand drivers.

Monetary Demand

Wealth preservation
Inflation protection
Safe-haven buying

Industrial Demand

AI infrastructure
Robotics
Solar energy
Electric vehicles
Advanced electronics
Defense systems
Silver possesses the highest electrical conductivity of any metal.
As AI and electrification expand globally, silver demand continues to benefit from secular growth trends.

The Silver Supply Crisis Remains

This is arguably the strongest part of the silver thesis.
According to the Silver Institute and World Silver Survey 2026, the market is expected to record its sixth consecutive annual deficit.
Above-ground inventories continue to be drawn down to satisfy demand.
This is important because:

It is produced as a by-product of:
copper mines
zinc mines
lead mines
gold mines
Therefore:

This structural issue remains one of the strongest long-term bullish arguments for silver.

Why the Pullback May Be a Gift

The correction since May appears driven largely by:
higher bond yields
delayed rate-cut expectations
stronger U.S. dollar
profit taking
reduced geopolitical fear
These are cyclical factors.
The long-term drivers are structural.
Historically, some of the best precious-metals investments have been made when:

while

That may be the situation today.

Here are Four silver plays we either own or have placed on our watch list!

Sprott Physical Silver Trust

PSLV represents direct ownership of physical silver.
No mining risk.
No cost overruns.
No political issues.
Simply exposure to a strategic metal experiencing persistent deficits.

If silver ultimately benefits from:
AI infrastructure
electrification
robotics
supply shortages
PSLV may become the purest way to participate.

First Majestic Silver Corp.

AG is one of the most recognized silver miners globally.
When silver prices rise, profitability can expand dramatically.
This operational leverage often causes silver miners to outperform the metal itself during bull markets.

If silver enters a true scarcity-driven bull market:
AG may become one of the largest beneficiaries.

Endeavour Silver Corp.

EDR adds something AG does not:

Its Terronera project provides company-specific growth potential in addition to silver exposure.
This creates two possible drivers:
higher silver prices
increased production

Few silver miners offer both growth and leverage simultaneously.

XGD

This is where gold enters the story.
XGD owns many of the world's major gold producers.
These companies benefit from:
higher gold prices
strong margins
central-bank demand
global reserve diversification
Unlike silver miners, gold producers generally provide:
greater stability
lower volatility
stronger institutional ownership

Gold remains the world's preferred hard-money asset.
The current correction may be providing investors an opportunity to buy world-class gold producers at more attractive valuations than were available earlier in the year.

Why Gold and Silver Belong Together

Many investors choose one or the other.
Historically, the strongest precious-metals portfolios often own both.
Gold and silver provide different exposures:
Asset Primary Driver
Gold Monetary demand
Silver Industrial + monetary demand
Gold Miners Gold price leverage
Silver Miners Silver price leverage
Together they create diversification within the precious-metals sector itself.

My Preferred TFSA Allocation Today

For an investor focused on:
AI infrastructure
silver shortages
hard assets
tax-free compounding
controlled volatility
I would currently favor:
Holding Weight
PSLV 25%
AG 25%
EDR 20%
XGD 30%

In the earlier report, the emphasis was heavily silver-focused.
Today I believe gold deserves a larger allocation because:

Meanwhile silver retains its higher upside potential.
This creates a more balanced precious-metals strategy.

The Bull Case Through 2030

If the following continue:

Then both gold and silver may remain in secular bull markets.
Several major institutions continue to forecast substantially higher gold prices over the next several years, supported by central-bank buying and reserve diversification.
Meanwhile the silver market continues to face structural shortages and inventory drawdowns.

Bottom Line

The correction since May has likely scared out short-term traders.
But for long-term investors, it may have created something more valuable:
A chance to accumulate both monetary metals and strategic technology metals at lower prices.
Gold is increasingly becoming the world's preferred reserve asset.
Silver is increasingly becoming the world's preferred electrification asset.
And the combination of:
PSLV (physical silver)
AG (silver torque)
EDR (silver growth)
XGD (gold stability)
creates a portfolio that is positioned to benefit from both of the defining themes of the next decade:

and

That is a combination few sectors can currently offer.
Ed Note: XGD provides a good place to begin our entry point this week

Saturday, June 20, 2026

The Precious Metals Reset

Why the Pullback in Silver, Gold and Mining Stocks May Be Creating One of the Best Buying Opportunities of 2026

Why Precious Metals Matter More Than Ever

Historically investors separated precious metals into two camps:

Gold: The World's Ultimate Reserve Asset

They are not trading.They are allocating reserves.Their continued purchases suggest that gold's strategic importance is increasing rather than declining.

Silver: The Technology Metal

Silver may be even more interesting.Unlike gold, silver has two major demand drivers.

Monetary Demand

Wealth preservationInflation protectionSafe-haven buying

Industrial Demand

AI infrastructureRoboticsSolar energyElectric vehiclesAdvanced electronicsDefense systemsSilver possesses the highest electrical conductivity of any metal.As AI and electrification expand globally, silver demand continues to benefit from secular growth trends.

The Silver Supply Crisis Remains

This is arguably the strongest part of the silver thesis.According to the Silver Institute and World Silver Survey 2026, the market is expected to record its sixth consecutive annual deficit. Above-ground inventories continue to be drawn down to satisfy demand.This is important because:

It is produced as a by-product of:copper mineszinc mineslead minesgold minesTherefore:

This structural issue remains one of the strongest long-term bullish arguments for silver.

Why the Pullback May Be a Gift

The correction since May appears driven largely by:higher bond yieldsdelayed rate-cut expectationsstronger U.S. dollarprofit takingreduced geopolitical fearThese are cyclical factors.The long-term drivers are structural.Historically, some of the best precious-metals investments have been made when:

while

That may be the situation today.

Here are Four silver plays we either own or have placed on our watch list!

Sprott Physical Silver Trust

PSLV represents direct ownership of physical silver.No mining risk.No cost overruns.No political issues.Simply exposure to a strategic metal experiencing persistent deficits.

If silver ultimately benefits from:AI infrastructureelectrificationroboticssupply shortagesPSLV may become the purest way to participate.

First Majestic Silver Corp.

AG is one of the most recognized silver miners globally.When silver prices rise, profitability can expand dramatically.This operational leverage often causes silver miners to outperform the metal itself during bull markets.

If silver enters a true scarcity-driven bull market:AG may become one of the largest beneficiaries.

Endeavour Silver Corp.

EDR adds something AG does not:

Its Terronera project provides company-specific growth potential in addition to silver exposure.This creates two possible drivers:higher silver pricesincreased production

Few silver miners offer both growth and leverage simultaneously.

XGD

Gold remains the world's preferred hard-money asset.The current correction may be providing investors an opportunity to buy world-class gold producers at more attractive valuations than were available earlier in the year.

Why Gold and Silver Belong Together

My Preferred TFSA Allocation Today

For an investor focused on:AI infrastructuresilver shortageshard assetstax-free compoundingcontrolled volatilityI would currently favor:HoldingWeightPSLV25%AG25%EDR20%XGD30%

In the earlier report, the emphasis was heavily silver-focused.Today I believe gold deserves a larger allocation because:

Meanwhile silver retains its higher upside potential.This creates a more balanced precious-metals strategy.

The Bull Case Through 2030

If the following continue:

Bottom Line

and

That is a combination few sectors can currently offer.Ed Note: XGD provides a good place to begin our entry point this week

They are not trading.
They are allocating reserves.
Their continued purchases suggest that gold's strategic importance is increasing rather than declining.

Silver may be even more interesting.
Unlike gold, silver has two major demand drivers.

Wealth preservation
Inflation protection
Safe-haven buying

AI infrastructure
Robotics
Solar energy
Electric vehicles
Advanced electronics
Defense systems
Silver possesses the highest electrical conductivity of any metal.
As AI and electrification expand globally, silver demand continues to benefit from secular growth trends.

This is arguably the strongest part of the silver thesis.
According to the Silver Institute and World Silver Survey 2026, the market is expected to record its sixth consecutive annual deficit.
Above-ground inventories continue to be drawn down to satisfy demand.
This is important because:

It is produced as a by-product of:
copper mines
zinc mines
lead mines
gold mines
Therefore:

PSLV represents direct ownership of physical silver.
No mining risk.
No cost overruns.
No political issues.
Simply exposure to a strategic metal experiencing persistent deficits.

If silver ultimately benefits from:
AI infrastructure
electrification
robotics
supply shortages
PSLV may become the purest way to participate.

AG is one of the most recognized silver miners globally.
When silver prices rise, profitability can expand dramatically.
This operational leverage often causes silver miners to outperform the metal itself during bull markets.

If silver enters a true scarcity-driven bull market:
AG may become one of the largest beneficiaries.

Its Terronera project provides company-specific growth potential in addition to silver exposure.
This creates two possible drivers:
higher silver prices
increased production

Gold remains the world's preferred hard-money asset.
The current correction may be providing investors an opportunity to buy world-class gold producers at more attractive valuations than were available earlier in the year.

For an investor focused on:
AI infrastructure
silver shortages
hard assets
tax-free compounding
controlled volatility
I would currently favor:
Holding Weight
PSLV 25%
AG 25%
EDR 20%
XGD 30%

In the earlier report, the emphasis was heavily silver-focused.
Today I believe gold deserves a larger allocation because:

Meanwhile silver retains its higher upside potential.
This creates a more balanced precious-metals strategy.

That is a combination few sectors can currently offer.
Ed Note: XGD provides a good place to begin our entry point this week