Silver price on high flight
At 19.60 US dollars per troy ounce, silver reached a three-year high. So, the 20 US dollars aren't far off either. The gold-silver ratio has thus fallen below 80 again for a long time. Which still makes silver cheap.
Last November, only 14 US dollars had to be paid for an ounce of silver. This is certainly due to extremely high inflows into silver ETFs and a strong expansion of net long positions. At present, the price drivers for precious metals have made particular use of the silver price.
Germany is in a phase of economic weakness. According to the Federal Statistical Office, economic output fell by 0.1 percent in the second quarter of 2019. A subsequent so-called "technical recession" is already expected. This means a further decline in economic output. And then there are the fears of savers. Soon the negative interest rate policy of the European Central Bank could also reach the ordinary citizen. Possible higher fees or even penalty interest frighten the citizen. In addition, the ECB has already hinted at a further easing of monetary policy. Because the falling inflation rate and the weakening economy are a thorn in her side.
The escape to the safe haven of precious metals has now taken place on a large scale. Time to look around the silver companies, there would be MAG Silver or Endeavour Silver. Both were able to increase their share prices in recent weeks.
Endeavour Silver - https://www.commodity-tv.net/c/search_adv/?v=299242 - has been working and producing successfully for years. Four silver gold mines in Mexico are responsible for this. A fifth project could soon be added.
MAG Silver - https://www.commodity-tv.net/c/search_adv/?v=299118 - is expected to start silver production next year at the Juanicipio Silver Project in Mexico together with its partner Fresnillo.
Current corporate information and press releases from Endeavour Silver (https://www.resource-capital.ch/en/companies/endeavour-silver-corp/) and MAG (https://www.resource-capital.ch/en/companies/mag-silver-corp/).
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