Silver needs good nerves
Between June 2020 and June 2021 alone, the price of the precious metal ranged between around 17 and almost 30 US dollars per troy ounce. This can unsettle investors. When a bull market will come is difficult to answer. The best way is still to look at the past and what moves the price of silver. It is still true that the price of silver moves pretty much in parallel with the price of gold. When the price of gold hit a record high last summer, silver, its little brother, also increased in price to over $28. Uncertainties made the prices, less supply and demand.
Geopolitical tensions, the pandemic, and other events have determined precious metals prices, as have the Federal Reserve's interest rate decisions. The first rate cut by the Fed came in July 2019, and now interest rates are at zero with no rate hike in sight soon. This has a positive effect on gold and silver prices. Tensions between the U.S. and China are likely to continue, and a rising gold price will probably also lift the silver price up again. On the supply side, it is assumed that large investments in silver mining will be necessary in the next few years in order to maintain production volumes. On the demand side, only the photovoltaic sector scored due to the pandemic. Areas such as silver investment, industrial demand and also the jewelry sector are unanimously expected to grow strongly again.
The World Silver Survey forecasts a silver price of 32 US dollars by the end of 2021. Silver stocks should therefore not be missing from the portfolio.
MAG Silver - https://www.youtube.com/watch?v=bEaHfDTZ2rg, for example, owns the producing Juanicipio silver project in Mexico together with its partner Fresnillo.
Also in Mexico, Discovery Silver - https://www.youtube.com/watch?v=gaZ301SosJ8 - has already completed a 66,000-meter phase one drill program at its wholly owned flagship Cordero project and is now in the phase two drill program.
Current corporate information and press releases from MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp/) and Discovery Silver (https://www.resource-capital.ch/en/companies/discovery-silver-corp/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also