Gold is top! But do not forget silver and copper!
If the economy now recovers, albeit not at a rapid pace, then silver in particular should benefit. Silver purchases have risen sharply in recent weeks. As reported by Pro Aurum, for example, demand for precious metals was extremely strong in the first quarter of 2020, then weakened in May and June. Now the demand from buyers has gone up again.
The Swiss finance house Vontobel sees the silver price at around USD 40 per troy ounce in the next few years. Supply bottlenecks could threaten as mining activities in key silver-supplying countries (Chile, South Africa, Mexico, Peru, Bolivia) have been severely restricted in some cases by the pandemic. And if we look at the silver price in 2011, it is still significantly lower today. In April 2011, the fine ounce of silver cost 48.70 US dollars and almost reached the all-time high of 1980.
Silver is the raw material MAG Silver focuses on. Together with its partner Fresnillo, construction work on the Junaicipio project in Mexico will soon be completed. MAG Silver owns 44 percent of the project and is getting closer to its goal of becoming a primary silver producer.
Copper, or rather companies with copper projects, are also benefiting from the higher copper price. Associated with Covid-19 is the chance that the fight against climate change will also be strengthened. This means more electric mobility and more copper demand. Similar to silver, an economic upturn is also a driver for the price of copper, the metal of the economy, and thus also for copper companies.
One of them is Copper Mountain Mining. With a 75% stake in the Copper Mountain copper mine in British Columbia, which produces around 90 million pounds of copper equivalent annually, the company is one of the most successful copper producers.
Recent corporate news and press releases from MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp/) and Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/).
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