Silver (XAG) has shown strength and positive price action throughout the first three quarters of 2024. Q3 2024 was a period of consolidation, forming a bullish price pattern.
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Commodities have done well in September but silver — and natural gas — stand out from the pack for reasons all their own, and show few signs of an end to their price rally.
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Silver will hit $35 per ounce within the next three months on the “strongest setup” seen in decades, analysts at Citi believe. The analysts reiterated their three-month forecast, while also projecting the metal will reach $38 per ounce within six to 12 months.
Silver's industrial demand, especially in green energy and electronics, and falling interest rates support a bullish long-term outlook for silver prices. Global X Silver Miners ETF offers exposure to silver miners, but has a high concentration in the top holdings and significant exposure to other metals. Despite being bullish on silver, I rate SIL as a hold due to its lack of pure silver exposure and high expense ratio.
Gold's breakout suggests a potential 2-3 year run to $3,500, with silver likely following, potentially reaching $88 per ounce. Investing in silver miners is speculative and high-risk, with the potential for 500% returns if silver prices surge, but expect volatility. Aya Gold & Silver, Coeur Mining, Endeavour Silver, First Majestic Silver, Fresnillo Plc, Hecla Mining, Hochschild Mining, Pan American Silver, and SilverCrest Metals are my top picks.
Silver surges as Fed rate cut chances grow. Dollar weakness and geopolitical tensions boost silver's appeal.
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EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) has inked a deal to sell a portion of its anticipated annual silver production from the Scotia Mine. A Letter of Intent (LOI) agreement with Silver Crown Royalties (SCRi) envisages the sale of approximately 7,000 ounces per year, covering the silver by-product from the Scotia mine's zinc concentrate.