When it comes to investing in precious metals, gold usually gets most of the attention
When it comes to investing in precious metals, gold usually gets most of the attention. But silver -- and silver mining -- may now be the better bet.
In early 2017, gains on silver were nearly twice those on gold -- and both beat the S&P 500. Despite silver prices fluctuating this year, investment analysts still predict further gains, with silver prices climbing higher in the next few years.
The reason is simple: rising demand at a time of shrinking supply.
The world now uses an increasing amount of silver. Humans have always coveted the shiny metal for coins, jewelry, and all sorts of utensils and serving dishes. But now, silver has become a vital industrial workhorse. It's crucial for smartphones, flat-panel TVs, solar panels, cars, and many other uses. In fact, industrial uses now gobble up half of all the global silver production -- with demand climbing dramatically.
The increased demand alone is pushing silver prices higher. But prices are also getting a boost from a shortfall in the supply of silver. Because of historical low silver prices, many once-productive mines have shut down and exploration for new mines has slowed.
Buying silver is one way to cash in on these trends. A more clever approach, however, is to invest in promising silver mining companies. One of those is Viscount Mining Corp (TSXV: VML, OTCQB:VLMGF).
Viscount has shrewdly searched out and acquired properties that show huge potential for silver mining, but that have not been developed. For example, Viscount CEO Jim MacKenzie found a property in Colorado named Silver Cliff that had been assessed in the 1980s as containing more than 50 million ounces of silver.
"It hadn't been developed as a mine, because the exploration company was sold and the property had reverted back to the original owners," says MacKenzie.
MacKenzie sought out the owners and acquired the property. And Viscount's own test drilling now shows some of the highest concentrations of silver ore ever found in North America.
The company is now looking for experienced partners to mine Silver Cliff and other properties, which would mean many years of impressive returns for Viscount's shareholders.