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 traded hands at about $31 per ounce on Monday afternoon.
“We have been bullish on silver for some time, and we believe the time is right to get even louder about it,” analysts wrote in a note to client.
“Silver is unique in that it has highly bullish exposure to both parts of China's bifurcated economy which, together with the bullish impact of the imminent Fed cutting cycle, we think underpins a very strong fundamental story where we model deficits in the order of 15% to 20% of consumption through the end of 2025.
“Only stockholder sales can fill the deficit, which is likely to require higher prices.”
News from the field:
- Vizsla Silver Corp. (TSX-V:VZLA, NYSE:VZLA) has raised $65 million to advance the exploration, drilling and development of its Panuco silver-gold project located in Sinaloa, Mexico. The offering was led by Canaccord Genuity (TSX:CF, LSE:CF) on behalf of a syndicate of underwriters including CIBC Capital Markets, Ventum Financial, Raymond James, Stifel, National Bank Financial, and BMO Capital Markets (NYSE:BMO).
- Silver North Resources (TSX-V:SNAG, OTCQB:TARSF) has kicked off its 2024 drilling campaign at the Haldene property in Yukon’s Keno Hill Silver District. The program will involve approximately 1,000 metres of drilling across three holes, targeting the West Fault, Main Fault, and Bighorn areas.
- First Majestic Silver Corp. (TSX:FR) announced it is acquiring Gatos Silver in an all-share transaction valued at $970 million, expanding its presence in Mexico. The acquisition allows for Gatos’ Cerro Los Gatos mine to join First Majestic’s San Dimas mine in Durango and Santa Elena operation in Sonora.
- EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) has entered into a letter of intent to sell some of its anticipated annual silver production from the Scotia Mine to Silver Crown Royalties. It expects to sell approximately 7,000 ounces per year, covering the silver by-product from the Scotia Mine’s zinc concentrate.
- Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) released updated mineral resource and reserve estimates for its Bolivian assets, the Bolivar mine, Porco mine, and Caballo Blanco Group of mines. These mines hold proven and probable mineral reserves of 54 million silver equivalent ounces, including 19 million ounces of silver and 259 thousand tons of zinc. Total measured and indicated resources stand at 102 million silver equivalent ounces, with inferred resources at 189 million silver equivalent ounces.