Silver as an investment with new significance

Analysts, for example from BullionVault, predict a deficit in silver for years to come. Demand is rising while mining production is falling. Silver is considered a volatile metal and silver has currently become somewhat cheaper in the wake of the stock market sell-off. But if you look at the gold-silver ratio, the metal is probably not overpriced.

If the price rises above USD 29.45 per troy ounce, according to chart technicians, it could continue to rise steeply. The approaching interest rate cut by the Fed will not only drive the gold price, but also the silver price. The US economy appears to be weakening and price pressure is easing. How precious metal prices develop in the near future will probably depend heavily on monetary policy and in this respect the prospects for silver look good. New technologies use silver as a conductive metal and it can be found in a wide variety of electronic devices.

ETF investors have been increasingly turning to silver since mid-July. Silver could therefore experience a renaissance as an investment metal and be discovered by new investors. After all, not only gold but also silver is considered a safe haven. It is a currency metal and is recognized as a means of payment. With its increasing use in industry, particularly in the photovoltaic sector, the chances of silver becoming more expensive are growing.

In any case, silver production is lagging behind industrial demand. Gold fans could see silver as a complement to gold investments and thus as a means of diversification in the portfolio. The current price decline provides another opportunity to enter the market at a lower price. A good alternative to physical silver are the stocks of mining companies that own the silver in the ground.

Endeavour Silver – https://www.commodity-tv.com/play/mining-news-flash-with-endeavour-silver-premier-american-uranium-and-millennial-potash/ – is a successful silver producer with silver projects in Mexico, Nevada and Chile (production in the second quarter of 2024 approx. 2.2 million ounces of silver equivalent).

Another silver producer is MAG Silver – https://www.commodity-tv.com/play/quarterly-update-from-gold-royalty-and-mag-silver/ -. The company has a stake in the Juanicipio mine in Mexico. Since the mine was ramped up in February 2023, encouraging progress has been made in terms of output.   

Current company information and press releases from MAG Silver (- https://www.resource-capital.ch/de/unternehmen/mag-silver-corp/ -) and Endeavour Silver (- https://www.resource-capital.ch/de/unternehmen/endeavour-silver-corp/ -).

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

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