Trade Alert: Silver Slingshot

A triple-levered bet on the gold-silver ratio reverting toward its mean. Plus, another biotech binary bet.

The Silver “Slingshot” Trade

The Macro View: Why Silver, Why Now?

For the last 18 months, the Gold-Silver Ratio (GSR) has tested the patience of every precious metals bull. While gold spent late 2024 and early 2025 shattering records, silver—which is half monetary metal, half industrial commodity—initially lagged behind.

But that dynamic has officially shifted. With silver recently breaking $60/oz and the GSR compressing toward 70, we are entering the most explosive phase of the cycle: “mean reversion.” Historically, during full-blown precious metals bull markets, this ratio doesn’t just stop here; it compresses toward 50:1 or even 40:1.

Mathematically, there are only two ways that happens:

1. Gold crashes while silver stays flat (unlikely in this macro environment).

2. Silver slingshots higher to catch up to gold.

The “Triple Leverage” Kicker

This trade is designed to stack leverage in our favor three times over:

• The Metal: Silver acts as a leveraged play on gold during ratio compressions.

• The Miner: Mining stocks typically move 2x–3x faster than the metal due to operating leverage (fixed costs vs. rising revenue).

• The Options: By using a bullish options structure instead of buying shares, we magnify that move even further, aiming for outsized returns if the “slingshot” thesis plays out.

The “7777” Screen

We aren’t just buying any miner. We ran our “7777” screen on Chartmill, which looks for stocks with a rating of 7/10 or higher in four key fundamental categories:

• Profitability: They must actually make money (rare for junior miners).

• Valuation: They can’t be priced for perfection.

• Growth: Earnings and revenue must be expanding.

• Health: Balance sheets must be robust enough to survive volatility.

Only 11 stocks in the entire database hit these criteria today. One of them is a silver miner breaking out to 52-week highs, and that’s our trade for today.

One more thing...

While silver is our main macro focus today, we are also looking at a special situation in the biotech sector. We normally describe the trade rationale in the free section, but in this case, we are briefly alluding to a “Biotech M&A Lotto” here and spelling out the full details in the paid section. This is a high-risk, binary event trade involving a potential buyout of a French biotech firm, but if we’re right, it could lead to a 100%+ gain within the next 6 weeks.

Details below.

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Today’s Chartmill 7777 Trade

(Silver Mean Reversion / High-Grade Miner)