Silver in times of crisis

Not only gold, but also silver is an attractive crisis metal.

First, it was assumed that the central banks would raise interest rates and thus investors would withdraw their assets from precious metals, since they do not yield interest. Consequently, the price of silver reacted downward. Whereas at the beginning of 2021 a good US$26 per troy ounce of silver had to be paid, by the end of the year it was only around US$23. However, this price development went in a different direction with the Russia-Ukraine problems, and this will probably remain the case for quite some time, because now safe investments are in demand. The silver-gold ratio is currently just under 77.

Add to this the strong silver demand predicted by the Silver Institute for the current year, with a record high of 1.112 billion ounces of silver forecast for 2022. This strong demand is driven by industrial consumption related to green energy. Demand for physical bars and coins of silver is also expected to have a strong year. A seven-year high is expected. 5G technology, the photovoltaic industry and electromobility will fuel silver consumption. While volume on the supply side is also rising, after silver was in deficit last year, supply will be insufficient to meet demand in 2022. So, there is again a threat of a silver deficit.

High time, then, to reconsider silver investments, for example in silver companies such as Discovery Metals or MAG Silver.

Discovery Silver – https://www.youtube.com/watch?v=wWFlkXI2His – will complete a pre-feasibility study for its Cordero silver project in Mexico later this year.

MAG Silver – https://www.youtube.com/watch?v=XZgLWlvpJ_M -, together with partner Fresnillo, is successfully producing silver and gold at its Juanicipio project in Mexico.

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.

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