A weak economy, shrinking production and strong demand could push the price of silver to $ 40 by mid 2022


(Kitco News) – The price of silver could climb to $ 40 an ounce by the middle of 2022, predicts James Anderson, CEO and chairman of Guanajuato Silver Company. But Silver continued to underperform 2021 estimates, currently hovering around $ 23 an ounce.

Anderson explained why he’s so bullish about the money. “If we have a weak economy coupled with a willingness to need and use more money, you are going to see base metal mines shutting down that produce silver as a by-product, as well as huge demand. money will appear, ”he said. “In this environment, you could easily see silver hitting the $ 40 price range. But it’s more likely that we’ll see $ 30 silver before it hits $ 40. I can see that. reach $ 40 by the middle of next year. “

Anderson, who is also a 20-year veteran in the financial services industry, spoke to Michelle Makori, senior host and editor of Kitco News. Guanajuato Silver Company (GSilver) is a Canadian mining development company engaged in the reactivation of old silver and gold mines near Guanajuato, Mexico.

Anderson spoke of money as a game against the devaluation of the currency and at the same time the demand for silver for industrial purposes. “Money is a unique hybrid of these two things. This is what causes the volatility of money,” he said. “But in the future, the additional uses of silver in the solar panel industry and in the electric vehicle industry, these uses are also well documented.”

“There is no large supply of silver above ground, while there is a large supply of gold above ground. So when a crisis of supply and demand arises on silver, it can affect the price very significantly and in a very short period of time. ” he added.

“I think governments around the world continue to destroy the intrinsic value of all Fiat currencies – all paper currencies – not just the US dollar, but also the euro, the wan, the yen, the pound sterling, the dollar. Canadian, there will be more and a continuing force in silver and gold, ”said Anderson.

The Biden administration has shut down pipelines, implemented additional oil and gas regulations, and made the United States again dependent on foreign oil. At the same time, there has been an aggressive push to decarbonize. Anderson spoke about the impact of these policies on energy markets.

“At the same time, we have all kinds of different components in the energy market – restricted and restricted. At the same time, there is a lot of new demand for energy. And that energy is coming from various places,” Anderson said. “In a very similar way, you can have a restriction on the production of silver and at the same time have a large increase in demand.”

Regarding the greater risk the markets face, Anderson said, “It would be a pretty sudden deflationary implosion. underline. “There is a very serious risk if there is a feeling of lower or higher interest rates, or even just a hint of that or a hint of removing some of the additional stimulus. In this case, it would be natural to have a strong, downward shock in the stock markets, and certainly in other asset markets around the world. “

Anderson also discussed the impact a deflationary implosion would have on gold and silver. “Gold could take a brutal downward shock before it starts to recover very quickly and very powerfully,” he said. “Money would be a dime a dozen. In this type of deflationary event, there would be no offer on anything for a brief period. This will also be the case with the money. I have no idea. how far the price will drop, but it will also recover very sharply. “

Anderson also discussed his new project in Mexico. “We have become the last Mexican company to produce silver and gold. We produce silver and gold at the El Kubo mine in Guanajuato, Mexico,” he explained. “We wouldn’t have embarked on this adventure if we hadn’t been positive and bullish on the prices of precious metals, especially silver. Silver will always be more volatile than gold. historical standard. “

Guanajuato Silver is focused on the refurbishment and rapid resumption of production at its El Cubo mine and plant, and its neighboring El Pinguico project, as well as on the delineation of additional silver and gold resources by underground and surface drilling.

For more on Anderson’s views on money, please watch the full video above. Follow Michelle Makori on Twitter: @MichelleMakori

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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