Randy Smallwood: It’s “Puzzling” to See Silver Underperforming

- October 7th, 2018

Smallwood, who runs Wheaton Precious Metals, says industrial demand for silver is “excellent,” while in terms of supply we’ve already seen peak production.

With its year-to-date decline sitting at about 10 percent, silver has fared worse in 2018 than gold, platinum and palladium. So what’s going on?

Speaking at the recent Denver Gold Forum, Randy Smallwood, president and CEO of Wheaton Precious Metals (TSX:WPM,NYSE:WPM), said it’s surprising to see the white metal underperforming.

“Silver has dramatically underperformed every other precious metal in the precious metals space,” he said. “It is a bit puzzling because the fundamentals behind silver are probably more attractive.”

Smallwood explained, “we’re seeing in excess of 60 percent of silver now being consumed in high-efficiency electronics, and so we see excellent demand on that side. We believe we’ve seen peak silver production too — we just don’t see growth on the silver side.”

Like many, he believes that when the silver price does eventually move, “it’s going to move very strongly.” He added, “silver always outperforms gold, it always outperforms other precious metals … it’s finished outperforming down, now it’s going to outperform on the way up.”

Listen to the interview for more insight from Smallwood on Wheaton Precious Metals, including why he sees 2018 as a “foundation year” for the company and what’s happening with its Canada Revenue Agency tax dispute. Click here to see the full Denver Gold Forum playlist on YouTube.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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