Why Some Analysts Believe Silver Will Outshine Gold In 2021

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May 25, 2021, 09:20 ET

PALM BEACH, Fla., May 25, 2021 /PRNewswire/ -- Many investors turn to gold during times of global crisis, and that is exactly what has happened this last year, during the pandemic. But experts say that smart investors should be looking at silver. A report from the Silver Institute (in collaboration with industry insider Metals Focus) says that silver will outshine gold as demand hits 8-year high in 2021. An article in Reuters discussing the subject said that the global demand for silver will rise to 1.025 billion ounces in 2021, its highest in eight years, as investors and industry ramp up purchases, the Silver Institute said on Wednesday, predicting that prices would rise. The article reported that: "The coronavirus outbreak triggered a rush among investors to stockpile silver, which like gold is traditionally seen as a safe place to store money. That impetus will continue, the institute said, predicting purchases of bars and coins would rise to a six-year high of 257 million ounces in 2021." It did not give a forecast for exchange traded funds (ETFs) storing silver bars for larger investors, but these have grown strongly so far this year, helping push prices to an eight year high of $30.03 an ounce on Feb. 1. Active mining stocks mentioned in today's commentary include: Ridgestone Mining Inc. (OTCQB: RIGMF) (TSX-V: RMI) Wheaton Precious Metals™ Corp. (NYSE: WPM) (TSX:WPM), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE:NEM) (TSX:NGT), Franco-Nevada Corporation (NYSE:FNV) (TSX: FNV).

The report published on Reuters.com continued "Silver is also used in industries such as electronics and solar panels, and demand will rise as the pandemic is brought under control and the global economy rebounds, the institute said. Industrial demand will rise 9% from 2020 to a four-year high of 510 million ounces, it said. Demand for silver for jewelry will rise to 174 million ounces but remain below levels seen before the pandemic. On the supply side, mine production should rise to 866 million ounces this year, the most since 2016, as disruption caused by the pandemic recedes, and recycled supply will increase for a fifth year, the institute said. The market will be slightly oversupplied, its sixth consecutive annual surplus, the institute said. It calculates its supply-demand balance without counting ETFs."

Ridgestone Mining Inc. (TSX-V: RMI) (OTCQB: RIGMF) (FSE: 4U5) BREAKING NEWS - RIDGESTONE COMMENCED PERMITTING FOR DRILL PROGRAMS AT BOTH MEXICAN PROJECTS - Ridgestone Mining ("Ridgestone") is pleased to announce it has commenced permitting for drill programs at both projects in Mexico: the Guadalupe y Calvo (GyC) gold-silver project in Chihuahua State and the Rebeico copper-gold project in Sonora State. The Company is planning for drilling to commence in the late summer following the end of the local rainy season.

"We are excited to advance both projects to allow for drilling later this year" commented Jonathan George, CEO. "The maiden resource tabled for our GyC gold-silver project represents the beginning of a much larger story for the Company. At Rebeico, we are highly encouraged by the preliminary results from the recently-completed exploration program and look to announce assay results in the coming weeks. Our team has identified a number of highly-prospective new target areas, including the past-producing El Cobre copper mine, which has seen little to no modern-day exploration."

Guadalupe y Calvo (GyC) Gold-Silver - Drilling at GyC is designed to further the recently-released maiden resource for the project. The current resource area, which stands at 356,000 oz AuEq in Indicated plus 460,000 oz AuEq in Inferred, remains open for expansion both along strike and at depth. Drilling will look to further define the high-grades at the Rosario and Nankin veins, in addition to testing for significant extensions within the district.

Rebeico Copper-Gold - The Company is permitting for a drill program to test the high-priority copper target areas that were the subject of a recently-completed exploration program. Assay results are anticipated in the coming weeks, which will serve to prioritize the numerous target areas being permitted. CONTINUED…. Read this full release more news for Ridgestone Mining by visiting: https://www.financialnewsmedia.com/news-rmi/

In other mining news of note:

Wheaton Precious Metals™ Corp. (NYSE: WPM) (TSX:WPM) recently announced the publication of its 2020 Sustainability Report, a comprehensive disclosure outlining Wheaton's sustainability accomplishments and environmental, social and governance ("ESG") performance. All amounts are in US dollars unless otherwise noted.

"As a leader in precious metals streaming, Wheaton is not only committed to advancing our corporate sustainability goals, but also championing sustainability throughout the entire mining industry and in the communities in which we and our mining partners operate," said Randy Smallwood, President & CEO of Wheaton. "The 2020 Sustainability Report looks back at a year where the COVID-19 pandemic significantly impacted lives and communities globally and reinforced the need for all stakeholders to work together to emerge from challenging situations with resilience. Recognizing this need, we eagerly stepped up and launched a $5 million Community Support and Response Fund, more than doubling the budget for our existing community investment program, with a direct focus on helping address the impacts of the pandemic as well as implemented measures to ensure the health and safety of our employees and communities."

Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) recently reported its results for the first quarter of 2021, noting that with gold and copper production on plan, it was well positioned to achieve its annual guidance. Production in the latter half of the year is expected to be higher than the first, mainly due to mine sequencing at Nevada Gold Mines, the commissioning of the new leach pad facility at Veladero in Argentina, the ramp-up of underground mining at Bulyanhulu and higher anticipated grades at Lumwana in Zambia.

Barrick's Tier One gold mines all delivered strong financial performances in Q1 while revenue from its copper mines rose by 31% due to higher copper prices. Net cash²increased by $0.5 billion despite an advanced tax payment to the state of Nevada on the back of operating cash flow of $1.3 billion and free cash flow of $0.8 billion. The company announced a 9 cents per share quarterly dividend, which will be topped up by a three-tranche return of capital distribution totaling $750 million through the course of the year. This would take the per share yield based on yesterday's closing share price to 3.5% for 2021.

Newmont Corporation (NYSE:NEM) (TSX:NGT) recently announced the completion of the acquisition of GT Gold Corp. (TSX-V:GTT) through which Newmont acquired the remaining 85.1% of common shares of GT Gold not already owned by the Company.

"With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio," said Newmont President and CEO Tom Palmer. "We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project."

Franco-Nevada Corporation (NYSE:FNV) (TSX: FNV) recently announced that its diversified portfolio outperformed in the first quarter generating record revenues and an 85% Adjusted EBITDA Margin," stated Paul Brink, President and CEO. "Antamina, Cobre Panama, and Hemlo made strong contributions along with our Energy assets that benefitted from a recovery in prices. We were delighted, post quarter-end, to acquire the Vale Royalty Debentures that, along with our Labrador Iron Ore Royalty Company investment, add to our base of low-risk long-life cash flow. The transaction adds to the diversity of our portfolio while it remains more than 80% precious metals focused. Following the acquisition, we have revised our guidance and outlook and now expect 25% growth in revenue over the next five years. Our primary focus is on adding further precious metal assets to the portfolio."

As previously announced, reflecting the acquisition of the Vale Royalty Debentures, Franco-Nevada now expects attributable royalty and stream sales in 2021 to total 580,000 to 615,000 GEOs from our Mining assets, an increase from 555,000 to 585,000 GEOs previously and additional revenue of $115 to $135 million from our Energy assets. For 2021 guidance, silver, platinum, palladium and iron ore prices have been converted to GEOs using commodity prices of $1,750/oz Au, $25.00/oz Ag, $1,100/oz Pt, $2,200/oz Pd, and $150/t Fe 65%. The WTI oil price and Henry Hub natural gas price are assumed to average $55 per barrel and $2.50 per mcf. We estimate depletion expense to be $265 to $300 million. For its 5-year outlook, Franco-Nevada now expects its attributable GEO sales to be between 630,000 and 660,000 GEOs by 2025, an increase from 600,000 to 630,000 GEOs stated previously and additional revenue of $150 to $170 millionfrom our Energy assets. The commodity price assumptions (excluding Fe 65% at $89/t) are the same as those used for our 2021 guidance and we assumed no other acquisitions other than the Condestable stream, Séguéla royalty and Royalty Debentures.

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