Silver prices set for historic upswing: Global demand rises to 1.2 billion ounces

Silver prices set for historic upswing: Global demand rises to 1.2 billion ounces

SILVER PRICES are poised for a historic upswing this year, according to the respected Silver Institute. Global demand will skyrocket and reach 1.2 billion ounces. Experts expect industrial demand alone to rise 4% to a record 690 million ounces. This increase comes after a record-breaking 2023, in which silver demand had already reached an all-time high. The photovoltaic and automotive industries in particular will be the drivers of silver demand growth, as new type N-type solar cells with higher efficiency require more silver and go into mass production.

The Silver Institute expects the fourth consecutive year of a structural market deficit, which will lead to higher prices. The economic situation, especially in China, points to a recovery again. Macroeconomic uncertainties regarding the direction of inflation and Fed policy are also seen as key drivers for the silver market. Silver will once again fulfill its traditional role as an investment or store of value.

One ad suggests that now is the best time to invest in silver stocks with companies like Endeavor Silver as they have become a high-flyer in the industry at the right time. Endeavor Silver delivered outstanding production numbers in the first quarter of 2024, achieving silver equivalent production of 2.3 million ounces. The record rally is reflected in the fantastic production figures, especially with the dynamic execution of projects such as “Guanaceví” and “Bolañitos”.

The Terronera mine, a new flagship project of Endeavor Silver, is expected to begin production in the fourth quarter of this year. This project will increase production capabilities and contribute significant revenue. Production costs are expected to be $2.15 per ounce, which will increase the company's profitability starting in 2025. Endeavor Silver is therefore optimally positioned to benefit from production growth and rising prices for silver and gold. Analysts believe a valuation of 13x EV-to-EBITDA multiple on a forward basis is justified.

Endeavor Silver's future successes will be significantly influenced by the commissioning of the "Terronera" mine, which is expected to result in a doubling of annual production. Endeavor Silver will benefit from rising silver and gold prices, and the $30 per ounce silver mark could soon be reached. Endeavor Silver's robust growth orientation is accompanied by low production costs, which positions the company favorably compared to competitors.