Sprott analyst Maria Smirnova “The available inventory of freely traded silver has been heavily diminished, making the metal more sensitive to incremental buying. Small increases in demand could now lead to disproportionately large increases in price,” she wrote.

According to Sprott analyst Maria Smirnova, silver remains “undervalued” relative to gold.

“On average, gold has historically been priced at 67x the price of silver. With the current ratio at 91, silver is selling at a strong discount to gold,” she said, adding that silver is mined at only 7:1 compared to gold.

“With less silver available for open-market trading, investor positioning has become a more decisive force

in price movements.” The current situation, she says, may be setting the stage for a possible “silver squeeze”.

https://www.mining.com/silver-remains-attractive-investment-with-potential-squeeze-scenario-sprott/