In this KE Report daily editorial, I’m joined by Erik Wetterling, founder and editor of The Hedgeless Horseman, for a deep dive into the silver market’s breakout and the explosive rally in junior metals stocks.

Silver has been the standout performer in 2025, climbing over 30% YTD to a 14-year high near $40. Erik breaks down why junior silver equities, especially the smallest and riskiest names, have seen outsized gains, often disconnected from fundamental improvements. He explains how rising sentiment and a risk-on attitude are driving momentum, leading to sharp rallies in names with little more than leverage to the silver price.

We discuss:

• The shift from gold leadership to silver, and how the gold-silver ratio dropping from 107 to 85 reflects this change.
  
  
• Why microcap silver juniors are seeing the most aggressive moves – and how sentiment, not fundamentals, is often the driver.
  
  
• Erik’s strategy: focus on undervalued names with upside but avoid speculative trades based only on “greater fool” theory.
  
  
• Stocks on Erik’s radar: With commentary on project quality, valuation, and risk.
  
  

As Erik puts it, the junior silver space may be “the worst sector long-term,” but in the current bull market, it’s showing some of the best short-term returns. Sentiment is surging, but caution is warranted. 

Click here to visit Erik’s site – The Hedgeless Horseman.