Profit from the seasonal nature of silver
Silver thus recorded its biggest price gains at the beginning of the year. The gold price is predicted by many to have an excellent future in 2020 and - silver prices are usually in the same range as gold. This also speaks for pleasing silver prices in the current year. For example, the experts at Commerzbank expect silver to be priced at around USD 18.50 per troy ounce by the end of 2020. Bankers assume that the price increase, similar to gold, will not be felt until the second half of the year.
The seasonal increase in the silver price at the beginning of a year has its reasons: The industry, i.e. silver processors and silver users, are buying silver on a large scale at this time. Usually the price of the precious metal falls after February and reaches a low around the middle of the year. So, there should be seasonal price gains in the next few weeks or, if one takes the side of the Commerzbank analysts more, only in the second half of the year.
In any case, gold's little brother is always an interesting investment opportunity. Here, with a leverage on the silver price, the shares of silver companies such as Endeavour Silver or MAG Silver offer themselves.
Endeavour Silver produced around four million ounces of silver and almost 39,000 ounces of gold in its mines in Mexico in 2020 - https://www.commodity-tv.com/play/endeavour-silver-investor-presentation-at-edelmetallmesse-munich/. This was slightly less than expected, but as company CEO Bradford Cooke points out, extensive changes have been made to the mines, which will lead to higher production in 2020. A trend reversal has already been observed.
MAG Silver is working with joint venture partner Fresnillo on the Juanicipio deposit in Mexico - https://www.commodity-tv.com/play/zuri-invest-gala-dinner-panel-discussion-with-mag-silver-gatling-exploration/. The partners expect total annual production of 11.7 million ounces of silver and 43,500 ounces of gold. The initial life of the mine is estimated at 12 years. Production may start as early as 2020.
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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