The nose ahead in silver
The Silver Institute is of the opinion that China will continue to be an important driver for the global silver market in the near future. The Middle Kingdom produced around 110 million ounces between 2010 and 2017, with India being an important customer.
A large part of the silver goes to the photovoltaic industry. More than 70 percent of photovoltaic cells worldwide come from China's factories. Thus China is also an important processor of the metal. The long-term upward trend is expected to continue in this sector in 2019. In the electronics and electrical sectors, the applications that require silver for production continue to grow.
This applies in particular to touch screens, light-emitting diodes and power generation devices. And China's planned infrastructure development, such as in the rail sector, will require additional silver for solders. In addition, sales figures in the automotive industry are rising. All these factors will strengthen silver demand.
This should more than compensate for the declining demand in the silver jewellery sector. There are also already signs that the jewellery industry's adaptation to changing market tastes will soon have an impact and lead to greater demand for silver jewellery. The demand for silverware has already turned up again.
An application example of silver benefits us all in winter. A conductive silver layer in the glass removes ice and snow from the rear windscreen and/or front windscreen. China only needs around 100 tons of silver per year for this - and the trend is rising. For the automotive industry in China, annual growth of three percent is predicted for the next few years. Silver companies such as MAG Silver or Endeavour Silver should focus on the right raw material.
Both companies are active in the silver country of Mexico. Endeavour Silver - https://www.commodity-tv.net/c/search_adv/?v=298727 - produces silver and gold in its mines, Guanacevi, Bolanitos and El Cubo. Soon a fourth mine is added (El Compas) and a fifth mine is developed.
MAG Silver - https://www.commodity-tv.net/c/search_adv/?v=298561 - is currently developing the Juanicipio Silver project with its partner Fresnillo, with production expected to start in mid-2020. About 200 million ounces of silver have to be brought into the light of the earth.
Current corporate information and press releases from MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp.html) and Endeavour Silver (https://www.resource-capital.ch/en/companies/endeavour-silver-corp.html).
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