Seneca’s Silver Stocks

Luke Laretive

CEO & Investment Advisor

Ben Richards from Seneca Financial Solutions dives into the appealing market potentials of silver. The commodity is threefold enticing with high demand, primarily driven by solar panel production, evident output deficiency and potential outperforming capacity during Federal rate-cutting cycles. Remarkably, industrial demand for silver has surpassed that of precious metals due to its use in solar panels which usually contain about 12oz of silver.

Concerning supply, Ben explains that the production sector is struggling to keep pace with demand. Authentic silver mines account for under a quarter of total silver production with the bulk being by-products from gold, copper, lead and zinc mines. The last decade, notably, witnessed stagnation in supply rates creating a deficit in silver inventories which might result in almost negligible inventories in the next 2 to 3 years if the current demand growth rate is maintained.

The conversation then turns to companies dealing in this commodity, like Sun Silver (SS1), which is set to IPO tomorrow, whose market valuation against proven resource in the ground looks promising. Other viable alternatives include South32 (S32) dealing in diversified commodities and Adriatic Metals (ADT) which recently commenced production in Bosnia and Herzegovina. Ben states that despite the limited, somewhat pricy choices there remains a favourable investment climate for silver in advance.