The imbalance on the silver market

In 2009, when the Fed loosened monetary policy with quantitative easing, the price of silver roughly quintupled. After the Fed’s pandemic intervention, the price tripled. In 2022, the silver price bottomed out at around USD 18 per ounce. At the beginning of April, the price of the precious metal plummeted after the US president’s threat of tariffs caused fears of recession. After all, the industry absorbs more than half of the world’s silver. Today, the demand for silver is significantly higher than the supply. The imbalance is around 15 percent.

Demand from the electric car and electronics industries in particular will continue to be responsible for the imbalance, even if there is a recession. Added to this is the silver demand from the defense industry and almost the entire world is now arming itself. It is difficult to say how much silver modern weapons systems consume, as the defense sector is committed to secrecy. The communications sector, drones, hypersonic missiles, reconnaissance systems, the radar sector – all these are modern sectors in which sensors, and therefore silver, are installed.

On the supply side, there has been almost no increase, in contrast to the demand side. Silver should therefore have a bright future ahead of it. From a fundamental point of view, silver is undervalued compared to gold. Investors who would like to invest in silver, which is an extremely attractive precious metal for the mass industry, as a store of value and for the jewelry industry, can take a closer look at Endeavour Silver or Discovery Silver.

Endeavour Silver – https://www.commodity-tv.com/ondemand/companies/profil/endeavour-silver-corp/ – is a successful producer with projects in Mexico, Peru and Chile.

Discovery Silver – https://www.commodity-tv.com/ondemand/companies/profil/discovery-silver-corp/ – owns the Codero project in Mexico. It has a reserve of 302 million ounces of silver.

Current company information and press releases from Endeavour Silver (- https://www.resource-capital.ch/en/companies/endeavour-silver-corp/ -) and Discovery Silver (- https://www.resource-capital.ch/en/companies/discovery-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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