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3.7. Don’t bet on the silver boom The industrial metal will not be dragged up by gold https://www.ft.com/content/c768ef03-6695-45b4-b282-f73843f41… ... Metal markets professionals do not share that view. CPM, an industry advisory firm that does not trade or sell the metals or related securities, has a house view that silver prices will not sink as they did in March, but are likely to trade above $16 and below $20. That is not enough to spark a silver mining boom. The newest significant silver mine, at Sotkamo in Finland, has not been a runaway success since it opened last year. The management, which had not, reportedly, fully price-hedged its production, has recently changed. Mining investors are more enthusiastic about the prospects for other metals, such as nickel, copper and cobalt. As one of them says: “There is much more emphasis on capital spending discipline. With silver, you have significant above ground stocks.” And that is the problem for the silver enthusiasts. Yes, the world’s mine output runs short of industrial, investment and jewellery demand. But there are billions of ounces of silver that has already been mined and then stored as bullion or turned into retail artefacts which can easily be melted down. That probably explains the apparent price resistance when the metal trades near $20. The good news is that unlike gold, silver is really too cheap to be worth faking. On the other hand, it is also too cheap to be of much interest to major banks. Forty or fifty years ago, there were rafts of precious metal groups at major banks, shuttling tonnes of metal through their vaults. In recent years, the physical trade in precious metals has attracted too many compliance costs and scandals to be interesting to most banks. Even first-rank hedge funds have difficulty getting ready access to the physical market for gold. Silver? They’ll call back later. ... |
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| aus der Diskussion: | Bank of America: 2019 steigt Gold auf 1.400 Dollar, Silber auf maximal 18 Dollar! |
| Autor (Datum des Eintrages): | faultcode (07.07.20 22:49:02) |
| Beitrag: | 76 von 169 (ID:64327463) |
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