A silver lining on the horizon
The dry spell for gold and silver seems to be over. This was already apparent at the end of 2018. Last year the silver price was not at its best, ETF holdings fell and demand for coins and bars was weak. Now the experts at the Silver Institute are positive about the future. On the one hand, the US Mint already sold 12 percent more American Eagle in January 2019 than in January 2018.
On the other hand, the weakening of the FED interest rate hike cycle should not only benefit gold, but also take the silver price upwards. An increase is expected in the current year for the silver demand of the industry, which devours a good 60 percent of the silver. This comes from the automotive industry, the chemical industry, electronics and the textile industry (antimicrobial applications).
And not to forget the photovoltaic industry, whose demand for silver weakened in 2018. Here, experts expect a return to growth. After all, solar capacities are to be expanded in many countries, above all India, Australia and various European countries. Economic and political imponderables and risks should also increasingly drive investors into the safe haven of precious metals.
As far as the silver jewellery industry is concerned, the signs should also be good, as India and Thailand are also causing a brisk decline. The popularity of silver jewellery is also increasing in the USA. So it's time to have a look at the silver companies like MAG Silver or Endeavour Silver.
Endeavour Silver - https://www.commodity-tv.net/c/search_adv/?v=298820 - owns three producing mines in Mexico. The fourth mine, El Compas, will be commissioned this quarter. The fifth mine, Terronera, which could become the largest, cheapest and longest life mine, is still awaiting final environmental approval and debt financing. But it could still be built this year. There is also the Parral exploration project and three exploration projects in northern Chile that could contribute to Endeavour Silver's growth philosophy.
MAG Silver (44 percent) and partner Fresnillo (56 percent) are developing the Juanicipio Silver Project in Mexico - https://www.commodity-tv.net/c/search_adv/?v=298561. First production is expected in mid-2020. The mine is estimated to produce an average of 10 million ounces of silver and 30,000 ounces of gold annually. The feasibility study has been completed while development and exploration activities are on track.
Current corporate information and press releases from Endeavour Silver (https://www.resource-capital.ch/en/companies/endeavour-silver-corp.html) and MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp.html).
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