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Silver Mining Companies: A Vital Part of a Portfolio
Gold and silver have both risen this year, but silver’s potential is greater. Invest in mining companies via AuAg Silver Bullet.
Gold and silver prices have surged in 2024, but unlike gold, silver remains far from its record highs. Silver's crucial role in industrial applications, especially in the green transition, suggests strong demand for the metal will continue.
Read more about AuAg Silver Bullet and invest here.
At AuAg Fonder, we believe both the price of gold and silver have a promising future. However, silver has greater potential. Here's why:
- In 2024, gold hit several new all-time highs, signaling the start of a long-term bull market. Historically, silver’s price has correlated with gold’s, though silver tends to experience more volatility and follows with a lag. Silver prices are likely to rise significantly in a prolonged gold bull market.
- In this potential long-term bull market, we expect the gold-to-silver ratio (the price of gold per troy ounce divided by the price of silver) to move toward 30:1, with an initial target of 70:1 for 2024.
- As our world moves toward electrification and the development of high-tech and green-tech products—such as batteries, solar panels, microchips, and wind turbines—the demand for metals like silver, which has the highest electrical and thermal conductivity, will increase.
Investing in AuAg Silver Bullet gives you exposure to some of the world’s top silver mining companies.
These companies offer leveraged exposure to silver prices, meaning their stock prices typically experience larger movements in line with silver prices, both up and down. This fund provides a portfolio of stocks with high return potential and is often referred to as Europe’s riskiest fund.
Many companies in this sector are already outperforming, and a combination of rising commodity prices, falling energy costs, and lower interest rates presents significant potential for this undervalued sector. Specifically, the latter two factors are contributing to a strong ‘margin expansion’ compared to past performance.
It’s important to note that this sector often moves in stages. Historically, in each stage, prices have risen by 100% or more in just 6-9 months. A similar upward movement is possible now, given that mining company stocks have room to catch up with commodity prices.
Our outlook for gold and silver prices in 2024 has largely come to pass, and we expect continued strong performance in the coming years, especially for silver. As the bull market progresses, we foresee the gold-to-silver ratio approaching its natural level of 16:1, or perhaps even lower, since silver is not only a monetary metal like gold but also a key metal for the electrification of our world.
Read more about AuAg Silver Bullet and invest here.
Disclaimer: Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance.
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Elements | October 2024
AuAg's monthly letter highlighting macroeconomic observations from the previous month.
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The fund manager see 30 percent rise in silver price
In a new interview from Dagens PS, Edvard Lundqvist asks Eric about this year's price surge in gold and silver and whether the train has left the platform for precious metals.
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Dagens Industri - The gold rush continues on the stock market - a second chance
In an article with Jakob Eriksson from Dagens Industri, Eric Strand explains that for those who missed out on the "gold train," a second chance awaits.
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