Silver Market Analysis
Current Market Situation
- Price Development: The price of silver has shown positive development in recent months and is currently above the mark of 35 US dollars per ounce after breaking through the resistance at 34 to 35 US dollars.
- Demand and Supply: The demand for silver exceeds supply for the fifth consecutive time, leading to a growing deficit. This trend is driven by the boom in future technologies such as photovoltaics, electric cars, and 5G technology.
- Industrial Importance: Silver is an essential raw material for the energy transition and digitalization, with industrial demand accounting for over 50% of global consumption.
Forecasts and Trends
- Short-term Forecasts: A consolidation phase is expected for 2025, with price fluctuations between 29.80 and 36.91 US dollars. The price could fall to around 31.37 US dollars by December.
- Long-term Forecasts: By 2030, the silver price could rise to 73.33 US dollars, and by 2035 to 106.60 US dollars, which represents a significant increase from the current level.
Magma Silver
Magma Silver is a company focused on the exploration and mining of silver. Although specific information about Magma Silver is limited, a strong comeback of the silver market could have positive effects on companies like this one, which could benefit from rising demand and improving market conditions.
Leverage
The leverage that Magma Silver offers could lie in the company’s ability to benefit from the rising demand for silver while managing market risks. Companies that can adjust their production to demand while keeping costs low provide a strong leverage for investors.
Relevance for Investors
In light of current inflation and interest rate developments, investors often seek stable investment opportunities. Precious metals like silver are traditionally regarded as safe havens, as they often serve as protection against inflation and currency devaluation. The rising demand for silver in future technologies and the flight of investors to safe havens could further increase the value of silver investments.
Overall, the silver market currently offers interesting investment opportunities, especially for investors who focus on long-term stability. Companies like Magma Silver could benefit from this development by strengthening their market position and profiting from the rising demand for silver.