In terms of price, silver usually follows in the wake of the gold price. The reaction of the central banks to the high inflation rates is likely to be decisive for the gold and silver prices in the coming year. In the USA inflation is just under seven percent, in Germany over five percent and in Euroland 4.9 percent. As the World Gold Council noted in a study, precious metals stand out during periods of high inflation. When it comes to the price of silver this year, investors will wonder why the performance hasn’t been pretty. It should be noted here that about half of silver goes to industry, and here lies a major reason for the weak silver price performance this year.

Industrial production was not particularly strong this year, supply chains often did not function and there were supply bottlenecks. In addition, energy costs have risen significantly. Nevertheless, the increasing electrification of vehicles, 5G technology and investments in green energies, especially in the photovoltaic sector, are creating demand for silver. Upside in silver prices should also come from tight supply. This is because the physical silver market is said to be running a supply deficit for the first time in six years. It remains to be seen when the silver price will return to the eight-year high of 30 euros per troy ounce reached at the beginning of February, but the weak phase could perhaps come to an end sooner than expected.

Then an investment in silver companies like MAG Silver or Kuya Silver would be nice.

Kuya Silver – https://www.youtube.com/watch?v=WrRAzMMxrkQ – owns the past producing Bethania project in Peru (1,750 hectares) and the Silver Kings project in Ontario.

MAG Silver – https://www.youtube.com/watch?v=Pi1uEfDSBcA – has prospective projects in North and South America in its portfolio. Flagship project is the Juanicipio project in Mexico.

Current company information and press releases from MAG Silver (- https://www.resource-capital.ch/en/companies/mag-silver-corp/ -) and Kuya Silver (- https://www.resource-capital.ch/en/companies/kuya-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.

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