Silver Institute: Silver price will rise in 2020
At the beginning of September, silver reached a three-year high of 19.65 US dollars per troy ounce. Overall, the average price for 2019 should in any case exceed 16 US dollars. Investor interest has risen sharply in recent months. A decline of 0.7 percent in production is forecast for the current year.
At the same time, demand for silver from the automotive industry and the photovoltaic sector rose. The silver jewelry and silverware sector is also likely to record a plus. It is estimated at three to four percent, with India being particularly responsible. Demand for silver coins and bars rose by an estimated seven percent in 2019.
The fact that the silver market is in a supply deficit for the first time in seven years is due to strong industrial demand, the ETF rise and declining mine production. Because of the long low silver price, investments in silver projects were rather meagre. Due to all these circumstances, many experts consider the silver price to be still too low.
This is also supported by the high gold-silver ratio, which currently stands at around 86. It says how many ounces of silver it takes to buy an ounce of gold. Based on the gold-silver ratio, silver is cheaper than it has been for 26 years. Of course, the silver companies benefit considerably from this development of the silver price. These would be for example Endeavour Silver or MAG Silver.
Endeavour Silver - https://www.commodity-tv.com/play/endeavour-silver-investor-presentation-at-edelmetallmesse-munich/ - takes silver and gold from three mines in Mexico. A fourth project (Terronera) is currently being promoted for the development decision. Endeavour Silver, a growth company, is also pursuing other projects in Mexico and Chile. The El Curso process area adjacent to the Guanacevi Mine has currently returned beautiful drill results of up to 1,182 grams of silver and up to 3.07 grams of gold per ton of rock.
Together with its partner Fresnillo, MAG Silver - https://www.commodity-tv.com/play/zuri-invest-gala-dinner-panel-discussion-with-mag-silver-gatling-exploration/ - is making excellent progress on the Juanicipio silver project in Mexico. The processing plant will be built and the mills will arrive at the project in early 2020. The mine, located on the Fresnillo Silver Trend, is expected to be commissioned by the end of 2020.
Current corporate 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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