Silver fundamentals strong, may outperform gold
It looks like we at American Resources are not the only ones noticing the increased appeal of silver – our “Metal of the Month” for March. The Gold Report interviewed several executives from the sector in a virtual roundtable for its latest issue. Here are the key points:
The fundamentals behind silver are strong.
Silver’s new uses have made it a strategic metal, required in electronics, solar panels, and many new medical applications due to its anti-microbial properties.
Demand for industrial silver uses climbed 17% last year, despite high prices. Price may be less relevant now, as only small amounts are needed, but as pace of new digital products is “exploding,” one of the panelists sees “silver consumption increasing dramatically.”
Silver has strong appeal as store of value. With the purchase of Canadian Maple Leave silver ounces and U.S. Silver Eagles exceeding production, and investment demand remaining strong, some believe silver may outperform gold.
Much of the world’s silver is mined as a byproduct of zinc, lead, copper and gold mining in more than 30 countries. Peru and Mexico account for one-third of global silver production, with Mexico’s change of foreign investment laws having lead to a mining boom with more than 300 Canadian mining companies exploring and producing.
With its new applications, silver is a prime example of the fact that this is not your grandmother’s resource sector anymore. As their utility broadens, metals and minerals are increasingly becoming foundational elements that will drive the 21st century economy. It is time we develop a coherent strategic framework reflecting this fact while harnessing our own vast mineral potential, and creating valuable jobs in the process.
