Gold price as a driver for the silver price

Silver accounts for the second-largest share of the cost of solar modules in demand. And newer technologies could increase silver’s share in the photovoltaic industry in the near future. The demand for silver for solar technology is a relatively new factor and one that continues to grow. While silver demand was subdued between 2017 and 2021, this has changed as a result of energy transition efforts. The Inflation Fighting Act and REPowerEU are increasing demand for green energy. This is because the main objectives of REPowerEU include reducing fossil fuels and increasing the use of renewable energy.

The price of silver is closely linked to the price of gold; if the price of gold rises, so does the price of silver. In this context, experts assume that the price increases for silver will be higher than for gold – thanks to the energy transition. Gold is more in demand as a safe haven, but last year private investors made strong gains in silver. Institutional investors were not so fixated on silver in 2022, but perhaps there will also be more demand from this area in the current year.

In the gold price, many analysts and industry experts expect new price highs this year, so this, together with the industrial demand for silver, should also benefit this precious metal in terms of price. Looking at the past, when the gold price has gone up by one percent, silver could gain 1.4 percent. So, it could be worthwhile now to bet on mining companies that have silver in their projects.

There is MAG Silver – https://www.commodity-tv.com/ondemand/companies/profil/mag-silver-corp/ – with its 44 percent share in the Juanicipio silver mine in Mexico. This recently started commercial production. MAG Silver also owns three additional projects.

In Mexico, Discovery Silver – https://www.commodity-tv.com/ondemand/companies/profil/discovery-silver-corp/ – can enjoy its Cordero silver project, which is one of the world’s largest silver deposits and is 100 percent owned by the company.

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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