Silver Crown Royalties Buys Bullion in US Amid Historic Sector Deficit

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Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) has purchased 1,000 ounces of physical silver in the spot market as part of its broader strategy to align company assets with its silver-focused mandate. The company disclosed the acquisition on April 9, noting that the silver was acquired at an average price of US$30.65 per ounce, consisting of a spot price of US$30.15 and a US$0.50 premium. The total cost of the transaction was US$30,650.

The purchase price represents an 8% discount to the company’s 20-day volume-weighted average price (VWAP) for silver and an 11% discount to recent highs. The silver will be stored with Money Metals Depository LLC, with the final location potentially being a designated sub-custodian facility operated by the depository.

According to Silver Crown CEO Peter Bures in the announcement, the decision to hold physical silver was consistent with the company’s long-term view. “We strive to maintain an adequate working capital position of at least six months,” Bures stated in a company news release. “We feel it is only prudent as a silver-only royalty company to convert a portion of that cash to physical silver.” He emphasized the company's strategic focus, adding, “SCRI’s ultimate vision is to provide a vehicle that serves as a hedge against currency devaluation, and we therefore feel it would be hypocritical to have exposure to 100% fiat money.”

The silver was purchased using a royalty payment received from PPX, effectively converting that payment into bullion held in reserve. Silver Crown currently holds four silver royalties, three of which are revenue-generating. The company's business model offers investors exposure to silver without direct exposure to mining operations or cost inflation associated with production.

Silver Sector Faces Tight Supply and Rising Demand Amid Historic Undervaluation

The silver sector continued to show signs of structural imbalance, with persistent supply deficits and rising industrial demand defining the landscape entering the second quarter of 2025. On March 30, Ahead of the Herd reported that 2024 marked the fourth consecutive year of silver market deficits, with a projected shortfall of 215.3 million ounces — the second-largest in more than two decades. Richard Mills of Ahead of the Herd noted that total silver supply was expected to decrease by 1%, while industrial demand continued to rise. Approximately 60% of silver consumption was attributed to industrial applications, including solar energy, electronics, automotive components, 5G, and flexible electronics. He cited a study by Oxford Economics forecasting a 42% increase in industrial and fabricated silver demand between 2023 and 2033.

Also on March 30, Clive Maund provided a technical analysis of silver’s recent performance, highlighting its breakout from a long-term Cup & Handle formation. The report stated that silver was “still working its way through considerable overhanging supply,” which was capping further gains despite the breakout. The analysis emphasized that the sector remained early in its bull market cycle, noting a lack of speculative interest and concluding that “the upside for the sector from here is massive — this thing has barely gotten started yet.”

On April 1, Christopher Lewis at FX Empire described the silver market as “noisy,” with ongoing volatility around the US$33–35 range. He noted that gold continued to influence silver's trajectory and that while short-term movements were difficult to predict, support levels remained intact. “Silver, of course, is being dragged higher by gold overall,” Lewis stated, while cautioning that silver’s volatility could present risks for traders misaligned with market momentum.

In an April 7 update from Ahead of the Herd, Richard Mills reiterated the undervaluation of silver relative to gold, citing a gold-to-silver ratio of 102, well above the historical average of 60. He argued that this imbalance typically preceded periods of silver outperformance and added that silver had posted a 27% gain in 2024, benefiting from physical demand in India and China, as well as rising gold prices. Mills stated, “In our opinion it’s only a matter of days before people realize how undervalued silver is to gold and start hoovering it up.”

Physical Silver Purchase Underscores Silver Crown’s Commitment to Direct Metal Exposure

Silver Crown’s acquisition of physical silver reinforces its investor-facing identity as a vehicle for direct silver exposure and financial stability. The move follows a series of corporate milestones outlined in the company’s Q2 2025 investor presentation, including the deployment of CA$3.3 million in capital and revenue growth that more than tripled over the past year. As of March 28, 2025, the company had 2.7 million shares outstanding and an implied market capitalization of CA$16.8 million.

The company’s current portfolio includes minimum silver delivery obligations that are expected to total 78,250 ounces in 2025, up from 15,180 ounces in 2023. Notable projects include a 90% silver NSR royalty on the Elk Gold Mine, where Silver Crown is entitled to a minimum cash-equivalent delivery of 6,000 ounces of silver per year. A similar 90% silver royalty is in place on Pilar Gold’s PGDM complex, which provides a minimum of 16,000 ounces per year.

In addition to its closed royalty agreements, Silver Crown has entered into two definitive agreements and maintains an active pipeline of over ten additional opportunities. The company targets internal rates of return greater than 20% across its portfolio and has structured investments to include staged payments, bonus provisions for production increases, and minimum delivery thresholds to secure value for shareholders.

Analyst Sees Upside in Silver Crown’s Pure-Play Strategy

In a January 21 research note, Couloir Capital analyst Tim Wright maintained a Buy rating on Silver Crown Royalties Inc., describing it as “the only pure silver royalty play on the market.” Wright set a price target of CA$32.34, noting that the company’s Enterprise Value-to-Equity Ratio stood at 1.0 compared to a peer group average of 5.7, which he cited as indicating significant relative value.

The report highlighted several milestones that positioned Silver Crown for long-term growth, including its July 2024 public listing and a 286% increase in revenue from Q3 2023 to Q4 2024. Wright also pointed to Silver Crown’s acquisition of the BacTech royalty, guaranteeing a minimum of 35,000 ounces of silver annually for ten years, and the PPX Mining agreement, estimating the company could generate over US$1 million in revenue in 2025 based on an expected 36,063 ounces of silver.

At the time of the note, the analyst valued the shares at CA$6.70, representing a potential return of over 470% to his target. While the report was issued prior to the company’s April physical silver acquisition, it provided context for investor interest and supported Silver Crown’s positioning as a silver-focused vehicle amid ongoing market deficits and rising industrial demand.

Ownership and Share Structure

Insiders and management hold a total of 21% of the company, institutions own 16%, and private corporations have 6%, noted Wright with Couloir.

"Insider ownership by management aligns management's interests with those of shareholders, which is a desirable attribute," he added.

As for share structure, Silver Crown has 2.49M outstanding shares and 2.1M free float traded shares. Its market cap is US$10.6 million. Its 52-week trading range is CA$6.50–9.85 per share.