VIDEO – Peter Krauth: Strategies for playing the money market right now

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Silver remains in the limelight and investor attention shows no signs of abating.

This heightened interest in the white metal started last year and has had many effects in the market, Peter Krauth, editor-in-chief of Silver Stock Investor, told Investing News Network.

On the demand side, around 330 million ounces were absorbed by exchange-traded funds (ETFs) in 2020, while around 200 million ounces went to physical investment points such as coins. coins and bullion.

The silver market is about a billion ounces per year, Krauth said, meaning that last year half of the supply was dedicated to these two types of demand.

“If you factor in all the demand (last year) including ETFs… there was actually a supply shortfall of 250 million ounces, which is a quarter of the number of annual offerings. It’s really, really important, and it’s quite a shock to hit the silver market in such a short time, ”he said.

When asked how investors should play the market, Krauth noted that with fairly high physical metal premiums, it may be a good idea to get exposure through a silver ETF and then switch entirely. or partially to physical silver when they are lower. His preferred vehicle is the Sprott Physical Silver Trust (ARCA: PSLV).

What about silver stocks? When looking at money-driven businesses, Krauth made two suggestions.

First, he sees opportunities in mid-level miners with market caps of up to around $ 1 billion. “They are a bit smaller, and if they are the primary producers of silver and control costs well, a large part of the increase in the price of silver will go to the bottom line and actually go to the bottom line. increase profits, ”he explained.

Apart from that, Krauth is interested in the Silver Explorers. They can provide leverage, and even if the price of silver does not move, these small stocks can see some upside due to a discovery or good drilling results.

Watch the interview above to learn more from Krauth about what’s going on in the silver market.

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Securities Disclosure: I, Charlotte McLeod, do not hold any direct investment interest in any of the companies mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or completeness of any information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investment News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.



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