Silver - gathering strength for something greater
The environment seems ideal for silver in particular. The major silver producers have reduced their silver production by about 4.4 percent compared to the previous year 2019. At the same time they have increased their gold production. Silver was traded at an extreme discount to gold this year.
As silver production declines, the gold:silver ratio is likely to decline in favor of silver. The gold-silver ratio should therefore drift back towards the historically normal range, i.e. from around 85 today towards a good 60. This could then be an opportunity for investors. Especially when investing in somewhat smaller, less well-known mining stocks.
In 2019, on the fourth of September, the silver price reached a three-year high of $ 19.57 an ounce. Around mid-2019, the gold:silver ratio reached a 20-year high of 90. Silver is an undervalued monetary value today. In addition, industrial demand is rising, especially in electronics and solar modules.
Thus, silver company stocks also performed well to very well on average this year compared to last year. Among the stocks with opportunities in 2020 are Discovery Metals and Endeavour Silver.
Endeavour Silver - https://www.commodity-tv.com/play/endeavour-silver-investor-presentation-at-edelmetallmesse-munich/ - has had a difficult year. But the management under CEO Bradford Cooke should have made and continue to make the right decisions for the future. For example, silver mining was recently stopped at the El Cubo mine because the costs were too high. To this end, other exploration and development projects are being pursued and there are three producing mines in Mexico.
Discovery Metals - https://www.commodity-tv.com/play/discovery-metals-well-financed-for-development-further-exploration-at-cordero/ - on the other hand is not yet producing. But the Codero silver project is very promising and it is located in Mexico. Discovery Metals also owns the Coahuila silver-zinc project, also in Mexico.
Recent corporate news and press releases from Endeavour Silver (https://www.resource-capital.ch/en/companies/endeavour-silver-corp/) and Discovery Metals (https://www.resource-capital.ch/en/companies/discovery-metals-corp/).
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