The price of gold has been steadily increasing, prompting interest in silver as a more affordable precious metal alternative. Silver prices have risen 18% in the last six months, reaching just over $40 per ounce.
Australia boasts the largest share of the world's economic silver resources, primarily located in Queensland, the Northern Territory, and South Australia. Silver is often found alongside other commodities in mines across the country.
Warren Pearce, CEO of the Association of Mining and Exploration Companies, believes the current climate presents an ideal opportunity for mining companies to capitalize on the growing interest in silver, fueled by the surging gold price. He highlights the significant increase in silver's price over the past three years.
While traditionally used in jewelry and cutlery, silver now plays a crucial role in various industries, including mirror production, electronics, solar panels, and medicine. Mr. Pearce emphasizes that silver's future value hinges on its technological applications.
He anticipates that traditional industries will experience a revival through integration into new markets. However, the exact impact on the existing silver industry remains uncertain, as it depends on the trajectory of technological advancements and the optimal use of silver in battery storage and renewable technologies.
The potential of silver has even captured the attention of gold investors. At a recent webinar, Canadian billionaire and investor Eric Sprott expressed his enthusiasm for silver, citing its affordability for the average investor. He also mentioned reports of Chinese media encouraging citizens to invest in silver over gold.
Macroeconomic analyst Luke Gromen shares a bullish outlook on silver, believing it will become a "monetary metal for the masses." He acknowledges silver's role as a "working metal" but maintains that gold's inherent value will always surpass it due to its lack of practical applications. He anticipates that silver will benefit significantly from gold's role in deflating debt and recapitalizing central bank sheets.
In Western Australia's historic Goldfields mining region, Morrie Goodz sees a promising future for silver. As a veteran of the resource industry, he previously led a company aiming to develop a "silver Superpit" in Kalgoorlie. He welcomes the recent price increase and renewed interest in silver, believing it will encourage current miners and potentially revive old proposals.
Mr. Goodz emphasizes the need to revisit previously assessed projects that were placed on hold. He sees immense potential in expanding Australia's role in the production of polymetallic metals, including silver.