While the ceasefire between Israel and Iran represented a positive development following a tense geopolitical flashpoint, it wasn't without consequence. The agreement between the two warring nations to halt hostilities led to a conspicuous decline in gold, which took down other precious metals, including silver. Subsequently, the miner sector also incurred a correction, with Pan American Silver Corp (NYSE:PAAS) losing about 5% on Friday. Still, silver's core demand profile could make PAAS stock intriguing.
From a monetary perspective, several experts have pointed to the gold-silver ratio, which is a historical measure of how many ounces of silver one ounce of gold can buy. As the theory goes, if the ratio reverts to its long-term average, the silver market could soar. According to Incrementum AG fund manager Ronald-Peter Stöferle, gold at $3,000 would imply a silver price that could reach between $55 and $63 per ounce.
