Uncertainties and crises call for gold and silver

The duality of silver – investment metal and industrial metal – speaks in favor of support for the silver price. The technology metal silver is often wrongly described as gold’s little and therefore insignificant brother. When there is a gold bull market, silver usually outperforms gold. However, in times of recession, when manufacturing demand falls, this is not so beneficial for silver demand and therefore the silver price. An ounce of silver currently costs around 23.80 US dollars. 26 to 28 US dollars per ounce is the mark that the silver price has repeatedly tested in recent years. This year, a low was reached at the beginning of March, when an ounce of silver briefly traded below USD 20. In May, it then had to pay more than 26 US dollars. Among other things, the banking crisis had an impact. Analysts disagree on whether silver will finally become more expensive. However, a breakthrough above 30 US dollars per ounce of silver is possible. Especially if the Fed’s monetary policy switches to interest rate cuts and the price of gold then rises.

According to the Silver Institute, industrial demand for silver is set to rise to a record level this year. Power grids, photovoltaics, consumer electronics, 5G networks and the automotive industry will fuel demand for silver. This will also offset the falling demand for silver from the jewelry and silverware sector. Silver mining yields are expected to be two percent lower than in the previous year. Overall, the market expects a silver deficit in 2023, the third year in a row. According to Metals Fokus, this deficit is set to continue in the coming years.

Investors can bet on silver with Discovery Silver – https://www.commodity-tv.com/ondemand/companies/profil/discovery-silver-corp/ . Its Codero silver project in Mexico is one of the largest silver deposits in the world.

If it’s big brother gold you’re after, Caledonia Mining – https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ -, for example, has a successfully producing Blanket mine in Zimbabwe. A new quarterly production record has just been announced.

Current company information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and Discovery Silver (- https://www.resource-capital.ch/en/companies/discovery-silver-corp/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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