Silver will benefit from the trend towards net zero issues. The currently weak investor interest will recover.
Precious metals experts like the analysts at UBS see a silver lining for silver, as a deficit is forecast for the metal. Market conditions for silver are also tight, and this will drive silver prices higher. In a rising gold price environment, the precious metal will typically outperform big brother gold, silver is now taking its cue from gold. Currently, silver has suffered significantly. The downward pressure from gold has understandably hurt the silver price badly. Real interest rates in positive territory and a strong U.S. dollar have weighed on silver more than gold. The silver price has been further burdened by growth concerns and weakness in industrial commodities. The gold-silver ratio has therefore risen to its highest level since 2020.
In the medium to long term, the gold price should recover and with it the silver price. The physical deficit expected in silver should help silver get back on its feet. However, the expected deficit also needs demand from institutional investors to drive prices higher. On the other hand, if the economy slips into recession, there are downside risks to the price of silver. Ultimately, it remains the positive outlook for gold that will do silver good. In any case, the focus is likely to be on silver demand from the solar industry, and it is in this area that the greatest chances lie for silver demand to increase significantly. This should then also fuel investor interest. Among the silver companies, MAG Silver and Discovery Silver are particularly appealing.
MAG Silver's - https://www.youtube.com/watch?v=amWboMpypqk - focus is on high-grade silver projects, with the Juanicipio project in Mexico, operated with partner Fresnillo, leading the way.
Discovery Silver - https://www.youtube.com/watch?v=39x7dnBTnhw - owns the Codero project, one of the largest silver deposits in the world, and is in an excellent financial position.
Current corporate information and press releases from MAG Silver (- https://www.resource-capital.ch/en/companies/mag-silver-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.
Disclaimer:
The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
Precious metals experts like the analysts at UBS see a silver lining for silver, as a deficit is forecast for the metal. Market conditions for silver are also tight, and this will drive silver prices higher. In a rising gold price environment, the precious metal will typically outperform big brother gold, silver is now taking its cue from gold. Currently, silver has suffered significantly. The downward pressure from gold has understandably hurt the silver price badly. Real interest rates in positive territory and a strong U.S. dollar have weighed on silver more than gold. The silver price has been further burdened by growth concerns and weakness in industrial commodities. The gold-silver ratio has therefore risen to its highest level since 2020.
In the medium to long term, the gold price should recover and with it the silver price. The physical deficit expected in silver should help silver get back on its feet. However, the expected deficit also needs demand from institutional investors to drive prices higher. On the other hand, if the economy slips into recession, there are downside risks to the price of silver. Ultimately, it remains the positive outlook for gold that will do silver good. In any case, the focus is likely to be on silver demand from the solar industry, and it is in this area that the greatest chances lie for silver demand to increase significantly. This should then also fuel investor interest. Among the silver companies, MAG Silver and Discovery Silver are particularly appealing.
MAG Silver's - https://www.youtube.com/watch?v=amWboMpypqk - focus is on high-grade silver projects, with the Juanicipio project in Mexico, operated with partner Fresnillo, leading the way.
Discovery Silver - https://www.youtube.com/watch?v=39x7dnBTnhw - owns the Codero project, one of the largest silver deposits in the world, and is in an excellent financial position.
Current corporate information and press releases from MAG Silver (- https://www.resource-capital.ch/en/companies/mag-silver-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.
Disclaimer:
The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
