Silver Crown Royalties: Hedging Fiat Risks with Physical Silver and a Robust Royalty Pipeline

As global markets grapple with currency devaluation fears and surging industrial demand for silver, Silver Crown Royalties (SCRI:CBOE; SLCRF:OTCQX) is positioning itself as a dual-play investment: a direct holder of physical silver and a consolidator of silver royalties from operating mines. The company's recent private placements, physical silver purchases, and progress on the Igor 4 project in Peru underscore a strategy that aligns perfectly with two critical trends—rising precious metal demand and the undervalued fiat-to-metal thesis.

Physical Silver as a Currency Hedge: A Strategic Move

In April 2025, Silver Crown acquired 1,000 ounces of physical silver at an average price of $30.65 per ounce, a transaction that represented an 8% discount to its 20-day VWAP and an 11% discount to recent highs. The purchase, funded by a PPX Mining royalty payment, was stored via Money Metals Depository LLC. CEO Peter Bures emphasized this move as a deliberate hedge against fiat currency erosion, stating, “Holding physical silver aligns with our mandate to provide investors exposure to a tangible asset that thrives in inflationary environments.”

This strategy is timely. Silver's gold-to-silver ratio of 102—far above its historical average of 60—suggests undervaluation relative to gold, a gap analysts expect to narrow as investors rebalance portfolios. Meanwhile, Q2 2025 industrial demand for silver is surging, driven by solar PV (14% of global demand), EVs, and 5G infrastructure. The Silver Institute projects global industrial fabrication to rise by 3% in 2025, surpassing 700 million ounces for the first time.

The Igor 4 Project: A Pivotal Royalty Acquisition

The cornerstone of Silver Crown's growth is its Igor 4 silver royalty, a joint venture with PPX Mining Corp. in Peru. The project, funded by proceeds from a non-brokered private placement, grants Silver Crown up to 15% of the cash equivalent of silver produced. The first tranche of the offering, closed in June 2025, raised C$668,447, while the amended offering targets up to C$3 million by July 2025.

The Igor 4 royalty is part of Silver Crown's broader portfolio diversification. The company now holds four silver royalties, three of which are revenue-generating:
- Elk Gold Mine (BC, Canada): 90% NSR royalty, minimum 6,000 oz/year.
- Pilar Gold (Brazil): 90% NSR royalty, minimum 16,000 oz/year.
- Tucano Gold (Brazil): 90% NSR royalty, minimum 35,000 oz/year.

The Igor 4 acquisition, once finalized, will add 36,063 oz/year of silver deliveries, boosting total annual minimum deliveries to 78,250 oz by 2025, up 417% from 2023.

A Track Record of Execution and Undervalued Metrics

Silver Crown's management has a proven record of executing royalty acquisitions. In June 2025, it signed a Letter of Intent with Kuya Silver Corp. to acquire a 4.5% royalty on the Bethania Silver Mine in Peru. This deal, valued at $5 million, could push annual deliveries to 128,000 oz by 2026, further solidifying its position as a pure-play silver royalty leader.

The company's valuation is compelling. With a market cap of C$16.8 million (as of March 2025) and 2.7 million shares outstanding, Silver Crown trades at an Enterprise Value-to-Equity Ratio of 1.0—far below peers' average of 5.7. Analyst Tim Wright of Couloir Capital maintains a Buy rating with a C$32.34 price target, implying over 470% upside from its June 2025 price of C$6.50.

Risks and Investment Considerations

While Silver Crown's strategy is compelling, risks persist:
- Regulatory delays: The Igor 4 project's final approval hinges on Cboe Canada's nod.
- Commodity price volatility: Silver prices could weaken if industrial demand slows or inflation expectations ease.
- Execution risk: Scaling the royalty portfolio requires consistent deal flow.

Final Analysis: A Bullish Call on Silver's Dual Drivers

Silver Crown Royalties is uniquely positioned to benefit from two converging trends: rising industrial demand for silver in clean energy and tech sectors, and the fiat-to-precious metals shift as currencies weaken. Its physical silver holdings act as a direct hedge against inflation, while its royalty pipeline provides steady cash flows insulated from operational risks.

Investors seeking exposure to silver's upside without the volatility of mining stocks should consider Silver Crown. With a 300%+ revenue growth trajectory and a valuation far below peers, the company offers asymmetric upside. However, investors should monitor the Igor 4 project's progress and macroeconomic factors like the Federal Reserve's policy stance.

Recommendation: Buy Silver Crown Royalties at current levels, with a price target of C$20 by end-2025, assuming silver prices stabilize above $35/oz and the Igor 4 deal closes.

This analysis underscores Silver Crown's strategic alignment with silver's structural demand and its disciplined execution in royalty acquisitions. In a world of fiat uncertainty, its dual exposure to physical silver and royalty streams makes it a standout play in the precious metals space.