Experts and investors also see a strong catch-up potential in silver. Copper investments should not be neglected either. Therefore, despite the euphoria about the gold price trend, these two metals should not be neglected, says Jörg Schulte from Swiss Resource Capital AG.
If the economy recovers now, if not at a rapid pace, silver should benefit in particular. Silver purchases have increased significantly in recent weeks. As reported by pro aurum, precious metal demand was extremely strong in the first quarter of 2020, then weakened in May and June. Now the demand from buyers has gone up again.
The Swiss financial company Vontobel sees the silver price at around $ 40 per troy ounce in the next few years. Supply bottlenecks could loom because the pandemic has partially severely restricted mining in key silver-supplying countries (Chile, South Africa, Mexico, Peru, Bolivia). And if you look at the silver price from 2011, it is still significantly lower today. In April 2011, the troy ounce of silver was $ 48.70 and almost reached the all-time high of 1980.
Silver is the raw material on which MAG Silver focuses. Together with partner Fresnillo, the construction work on the Junaicipio project in Mexico will soon be completed. MAG Silver owns 44 percent of the project and is getting closer to its goal of becoming a primary silver producer.
Copper, more precisely companies with copper projects, are also benefiting from the increased copper price. Connected to Covid-19 is the chance that the fight against climate change will also be strengthened. That means more electromobility and more copper. Similarly to silver, an increasing economy is a driver for the price of the economic metal copper, and therefore also for copper companies.
Copper Mountain Mining is one of them. With a 75 percent stake in the Copper Mountain copper mine in British Columbia, which produces around 90 million pounds of copper equivalent annually, the company is one of the successful copper producers.