Investors beware – silver still in deficit

A record high is expected, according to the Silver Institute, namely an increase in silver demand of eight percent. The main drivers are photovoltaic technology, the power grid, 5G networks, consumer electronics and the automotive industry. Although there are silver sectors where demand will fall, this should be more than offset. And the years of silver deficits are unlikely to end but will continue into the future. Demand is also expected to increase in the silver jewelry sector, unlike in the silverware sector. A decline is expected for silver coins and bars. This is particularly the case in Germany (the tax on some silver coins was increased at the beginning of 2023) and in India. In contrast, demand for these forms of investment is robust in the USA. On the supply side, the amount of silver from silver mines is expected to have fallen by around 2% in 2023, as less of the precious metal is coming from Mexico and Peru.

The economic consultancy firm Oxford Economics expects an overall increase of 42% in the production of industrial, jewelry and silver goods between 2023 and 2033, which would be double the figure for the previous decade. Silver applications in industry are growing in any case; for example, silver could perhaps replace expensive platinum group metals in fuel cells. The heavy-duty sector, for which fuel cells are a clean alternative, could also benefit, as could the demand for silver. Silver companies such as Endeavour Silver and Sierra Madre Gold and Silver are also benefiting from the demand for silver.

Endeavour Silver – https://www.commodity-tv.com/ondemand/companies/profil/endeavour-silver-corp/ – owns six projects in Mexico, one in Chile and one in Nevada. These include two high-grade underground silver-gold mines (Mexico). Founded in 2004, the company is striving to become a leading silver producer.

Sierra Madre Gold and Silver – https://www.commodity-tv.com/ondemand/companies/profil/sierra-madre-gold-silver/ – is working on the revitalization of the La Guitarra mine in Mexico, which is said to have around 20 million ounces of silver equivalent resources. Two further silver projects in Mexico round off the portfolio.

Current company information and press releases from Sierra Madre Gold and Silver (- https://www.resource-capital.ch/en/companies/sierra-madre-gold-and-silver-ltd/ -) and Endeavour Silver (- https://www.resource-capital.ch/en/companies/endeavour-silver-corp/ -).

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