Corona Hyper Debt and Silver Investments
Global debt is increasing. Low interest rates plus inflation result in negative real interest rates. The argument that silver does not yield interest is therefore no longer of interest. The inflows into silver investments have been very high this year so far and it should continue to be so in view of the massive second wave of the pandemic. Unlike money, which can be printed and multiplied as desired, silver is a rare commodity.
Silver's inherent volatility should be used to its advantage. In addition: If gold is in demand, this will also pull the silver price down. In addition, silver is cheaper to buy than gold. Keyword silver is the gold of the little man. The annual mine production is around 850 million ounces of silver, of which a good 50 percent goes to the industry.
What could further strengthen the silver price is its use in climate protection, i.e. as a material for the future. Wind and solar energy, electric vehicles and also the new 5G grid increasingly need silver. And climate targets are a central issue for the leading countries, and they are becoming increasingly important. Some industry experts expect an enormous increase in demand for silver, especially in the areas of photovoltaic technology and electromobility.
Should Joe Biden become the new president of the USA, this would probably be another argument for a rising silver price. After all, the expansion of renewable energies and the re-entry into the USA's Paris Climate Agreement are declared goals of candidate Biden.
If you want to bet on silver, take a look at MAG Silver or Vizsla Resources.
MAG Silver (and partner Fresnillo) is on the way to commercial production with the Juanicipio project in Mexico. An initial production of nearly 394,000 ounces of silver, 610 ounces of gold, lead and zinc was recently reported.
Vizsla Resources' Panuco gold-silver mine in Mexico will also be producing soon. The nearly 10,000-hectare property contains epithermal silver and gold deposits.
Current company information and press releases from MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp/) and Vizsla Resources (https://www.resource-capital.ch/en/companies/vizsla-resources-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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