Peter Krauth, publisher of Silver Stock Investor, spoke to the Investing News Network about silver supply and demand dynamics, as well as where the white metal’s price may be headed for the rest of 2023 and into 2024.
He believes movement is coming, but said investors shouldn’t expect it to happen quickly.
“I think that patience will absolutely be rewarded in this market,” said Krauth during the interview. “It’s an excellent time for people to be doing their research, to start nibbling on some of these companies. There are some really tremendous opportunities out there, so it’s time to really get your homework done and start participating.”
In terms of supply, he said issues in top producers Mexico and Peru will put a dent in output this year.
“Given that the world’s two largest silver-supplying countries are seeing multi-year lows in supply, and (given) the prospects for new silver mines to come on stream … we’re talking 10 to 15 years these days,” he said.
Meanwhile, the solar sector is supporting demand in the face of weaker buying from investors.
“We cannot underestimate what is happening, we cannot ignore what is happening in the solar sector when it comes to the silver market,” Krauth emphasized. “It really is a huge impact on demand for silver.”
According to the Silver Institute, the market was in deficit by a substantial 237.7 million ounces last year, and the organization is predicting a shortfall of 142.1 million ounces in 2023. When asked if he expects that to play out, Krauth said he believes the Silver Institute will revise this year’s deficit figure upward.
“I think that people really do need to realize that stocks and bonds have had their time … they need to realize that we’re in a new age — it’s an inflation age unfortunately — and to look for the ideal ways to play that: commodities and precious metals are ideal in this kind of an environment,” said Krauth. “And so don’t be too influenced by the recent past — the future is going to be considerably different from what people have experienced recently.”
Watch the interview above for more of his thoughts on silver supply, demand and prices.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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