silver spot direction
silver up
silver down
verdict
SLVP outperforms physical silver · IAU tracks linearly
fixed cash cost
(labor, energy, consumables)
revenue
(scales with silver)
FCF gap
(leverage)
gold bullion
(IAU 1:1)
Metal-vs-miners operating leverage: SLVP amplifies silver moves while IAU tracks spot gold
SLVP — silver mine cash cost curve
silver spot
shaft
silver ore vein
drift + loader
cash cost
fixed · labor · energy
revenue
scales w/ silver
FCF gap
+10% silver → +30% FCF
IAU — physical gold vault
vault
spot gold 1:1
no management
no operating cost
no jurisdiction
IAU ≈ spot gold
SLVP outcome
FCF expands disproportionately
SLVP outperforms physical silver
IAU outcome
tracks spot gold linearly
defensive exposure, no operating layer
miner risks on top of leverage
Mexico · Peru · Canada
permitting · dilution · balance sheet
vault risk: no cash flow, no dividend
rising real yields →
opportunity cost ↑
FCF waterfall