Strong investment in silver
According to the Silver Institute, global silver ETPs (Silver Backed Exchange Traded Products) increased by nearly 297 million ounces in the third quarter of 2020, a tripling of the growth rate compared to the same period last year. ETP holdings totaled 1.026 billion ounces by the end of September.
The demand for silver coins is equally strong. After all, the increase in the first three quarters of 2020 accounts for a good 65 percent. Especially in the U.S. and in Germany, significant double-digit increases in coins went over the counter. Silver bars were just as sought-after.
Since about 50 percent of the silver mined goes to industry, it is important to take a look at industrial demand. Here, a recovery can be seen in the third quarter and in the current fourth quarter. The photovoltaic sector in particular has shown strength despite corona. Overall, however, industrial demand is expected to be around ten percent lower in 2020 as a whole.
There has been a decline in demand in the jewelry sector in the current year, which may account for an estimated 20 percent. Nevertheless, a solid demand situation for silver can be expected overall, because the monetary and fiscal measures are continuing and if the gold price rises again, then there could be large purchases of silver in particular. Since the gold price is also pulling the silver price upwards. The Silver Institute considers a price of 30 US dollars to be possible this year.
Enough reasons to invest in silver companies, such as Endeavour Silver. Three silver-gold mines in Mexico produced approximately 942,000 ounces of silver and nearly 10,300 ounces of gold in the third quarter of 2020.
Summa Silver is not yet producing but seems to have made a lucky choice with its historic Belmont mine in Nevada. Drilling has already produced very encouraging results (e.g. 3,760 grams silver equivalent over 2.5 metres).
The latest company information and press releases from Endeavour Silver (https://www.resource-capital.ch/en/companies/endeavour-silver-corp/) and Summa Silver (https://www.resource-capital.ch/en/companies/summa-silver-corp/).
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