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Miners Step Out and Investors Step Up to Ride the Silver Bull Market

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Silver Bull Market

 

The impressive Q2 numbers for mining players like Endeavour Silver Corporation, a silver mining company out of Vancouver, British Columbia, are yet another example of the 2021 “silver lining” in the Covid 19 cloud that lingered over the global economy in 2020. 

The future looks so bright for Endeavour that they’ve taken to the wires with a paid press release to the AP via Global Newswire. With shutdowns and disruptions instigated by the government of Mexico behind them, consolidated production in operations there “continues to outpace the 2021 production guidance of 6.1 to 7.1 million silver equivalent ounces, totaling 3.9 million AgEq oz (gold equivalent) for the 6 months ended June 30, 2021.”

The Q2 numbers for Endeavour Silver 

  • Sold 1,120,266 oz silver and 9,810 oz gold. 
  • Held 459,659 oz silver and 1,891 oz gold of bullion inventory. 
  • Held 12,159 oz silver and 944 oz gold in concentrate inventory. 
  • Production of 1,073,724 silver ounces (oz).
  • Production of 11,166 gold oz in Q2, 2021. 

Those strategic holds give us a hint about a bull market gaining traction, one that many silver watchers are anticipating for the remainder of 2021 and beyond. Endeavour management withheld metal from sale during the price correction over the last two weeks of June. Under new CEO Dan Dickson, and freshly promoted CFO Christine West, the corporation plans to sell the withheld metal inventory in anticipation of a precious metal prices rebound in 2021. 

More Than a Transitory Bull Market For Silver?

In his July 7, 2021 article for Streetwise Reports, The Silver Bull Is Not Transitory, analyst and portfolio adviser Peter Krauth makes the case for a sustained bull market that “looks primed to rally strongly on the back of multiple drivers.”

Under the Biden administration, core inflation numbers have already risen to a 30-year high, soaring from 1.6% in February up to 3.9% in May. According to Krauth, of Silver Stock Investor, CPI made headlines with yet another recently reported increase up to 5% to rack up a 10-year high. And Krauth doesn’t pull any punches when he calls out the Fed for overly optimistic guidance claiming that soaring inflation numbers are mere “transitory” blips on the post covid 19 recovery radar. 

“The Fed is looking increasingly wrong in its assessment that the inflation numbers we’ve been seeing are transitory. That means investors would do well to seek shelter from inflation-protection assets.”- Peter Krauth

That’s a surefire way to ramp up wary investors looking for a reliable precious metal hedge against “entrenched” inflation, which Peter Krauth and many others see as “coming back with a vengeance”. Krauth is quick to point out that early into the anticipated bull market;

 Silver prices are parked near their 50-year lows, a position “suggesting explosive potential upside as the stock market matures and likely corrects, while silver continues to climb.”

Physical Silver Demand Expected to Climb by 26%

So we see the traditional inflation drivers moving investors to jump in early to the silver bull market rodeo. But there’s more to the physical silver lining that has miners stepping out and stepping up to meet sustained demand from the industrial sector. 

After analyzing data from the World Silver Survey 2021, the Silver Institute expects physical demand to climb by 26%. Overall demand for silver, from all sectors, is forecast to increase by 15%, nearly doubling supply growth of 8%. 

So where is the overall demand for more physical silver coming from? You may want to check your wrist. Everything in the list below relies on flexible electronics and printed circuits that already consume 48 million ounces of silver annually to manufacture.

  • wearable electronics like smartwatches
  • home appliances
  • medical devices
  • internet-connected (IoT) devices
  • Sensors for light, motion, temperature, moisture and motion 

Demand will rise to about 74 million ounces by 2030, as the world consumes 615 million ounces of silver in this decade alone, according to Silver Institute forecasts. And that’s catching the attention of metal miners ready to cash in on the silver streak. 

silver mining operations

Viscount Mining Steps Out With New Drilling in Silver Cliff Colorado

With demand for physical silver on the rise, yet another Vancouver miner is spreading the good news about “drill results which have confirmed the recent geophysical and geochemical study at its Silver Cliff property in Colorado”. 

Viscount Mining Corp. is focusing exploration efforts in the Kate Resource area, leaving no stone unturned as they wrap up Phase 2 exploration with drill holes “designed to test the outer limits of the Kate area, [that] will guide the phase 3 program that will be designed to expand the Kate Resource area.” The “step out” in mineralization drilling turned up a promising  51.4 g/t silver over 24.4 Meters. 

But Viscount’s good news for Colorado metals mining here in the US falls a bit short of the surprise jackpot unearthed by one Cornish mining company in the UK.

Cornish Metals Goes For the Copper and Strikes Silver

Cornish Metals had set their sights on copper, tin, and lithium to leverage increasing demand for these metals in an anticipated explosion of electric vehicle production

Cornish Metals Inc. (TSX-V:CUSN, AIM:CUSN), is an Associate Company of Canada’s Osisko, with the stated mission of building a portfolio of strategic metals assets in the United Kingdom and North America. 

According to the company website, Cornish Metal’s near-term strategy is “to focus on exploration and delineation of the near-surface high-grade copper and tin mineralization at the United Downs project in Cornwall, UK.” So it was quite a jackpot for the company focused on the “magnet metal “ rush when they struck silver along with the high grade tin and copper they’d been expecting. 

CEO Richard Williams remarked on the serendipitous discovery, “We are pleased with the initial results and observations from our drilling at United Downs, and pleasantly surprised with the silver content recorded.”

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