Interest in silver will remain
Consumption and economies are affected by corona, with closures and gradual return to normal life being the theme. Whether the global restrictions and precautionary measures are or were necessary or perhaps even excessive - from the perspective of stock market and commodity fans, memories of the global financial crisis are awakening.
In any case, the Silver Institute assumes that the global silver supply will be about four percent lower in 2020, caused by Covid-19 disruptions. This is after all the lowest level since 2009 and thus significant, even if the exact impact of silver production due to the crisis is still difficult to quantify.
Disruptions in demand in many areas will be offset by the high demand for bars and coins (estimated growth of 16 percent). Overall, the silver price should rise sharply, forecast to be around $19 per troy ounce by year-end.
Especially institutional investors are buying silver. Worries about the global economy and low or negative interest rates will further fuel the flight into precious metals and especially silver. In addition, silver is still a bargain compared to its big brother.
In the silver companies, shares of Endeavour Silver can currently still be bought relatively cheaply: https://www.commodity-tv.com/play/endeavour-silver-investor-update-april-2020/. The portfolio includes three high-grade silver-gold mines in Mexico, which have been producing successfully for years.
MAG Silver is working with its partner Fresnillo to start production at the Juanicipio Silver Project, also in Mexico: https://www.commodity-tv.com/play/newsflash-with-mag-silber-rnc-minerals-gold-terra-resource-enwave-and-canada-nickel/. Work will continue there in May at the latest, probably earlier, following the Corona closure.
The latest company information and press releases from Endeavour Silver (https://www.resource-capital.ch/en/companies/endeavour-silver-corp/) and MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp/).
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