Silver Rebounding

Source: Silver Investing News, Michael Montgomery (2/1/11)

"The most pressing issue that looms over the silver market is the perceived lack of liquidity."

Silver has had a tumultuous January after hitting highs in late December of over $31 per ounce; the market has since undergone a correction. The most pressing issue that looms over the silver market is the perceived lack of liquidity.

January set records for silver bar/coin sales at the U.S. Mint, over 5 million coins were sold, shattering the November 2010 record of 4.6 million. While the price of silver has undergone a correction, the demand for the metal is still overwhelmingly strong. Bullion dealers are complaining about the inability to fulfill orders for silver bars. Many have stopped taking orders completely.

"Frankly, we are concerned about the illiquidity in the physical silver market. We believe the delays involved in the delivery of physical silver to the Trust [Sprott's gold trust] highlight the disconnect that exists between the paper and physical markets for silver," stated Eric Sprott, CEO and CIO of Sprott Asset Management.

The unrest in Egypt may also be in the back of traders minds as risks from the political fallout may spread through the oil rich Middle East. "We could see geopolitical contagion and the crisis spreading to the undemocratic oil rich states of United Arab Emirates, Kuwait and Saudi Arabia. If so, this could drive up oil prices, which in turn is inflationary," reported Allen Sykora, for Kitco.

A positive factor for the increased demand for silver going forward is the Chinese government increasing its reserves of gold and silver. Looking to increase the relative value of the Yuan, reports show the desire of China to increase it holdings of precious metals. While the exact figures of China’s silver reserves are hard to come by, reports indicate plans to increase reserves of silver as well.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

Explorer Completes Phase 2 Metallurgical Work for Palladium-Copper Project
Source: Streetwise Reports (01/28/2021)

Generation Mining intends to wrap up the feasibility study on Marathon this quarter.

Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

MAG Silver's joint venture project Juanicipio produced 230,000 ounces of silver during the quarter ended Dec. 31, 2020.

Explorer Reports High-Grade Gold-Silver Intercepts at BC Golden Triangle Property
Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

Junior Mining Sector 'the Best Value in the Space'
Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.