Peter Krauth: Silver Fundamentals Strong, Big Deficits are New Reality
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The silver market was in deficit by a record 253 million ounces in 2022, said Krauth, and shortfalls are expected to persist in the coming years.
The silver market was in deficit by 253 million ounces in 2022, and Peter Krauth believes this could be the new norm.
"That is absolutely a record deficit, and the interesting thing is the Silver Institute, amongst others, believes that these are going to persist for years going forward," he said at this year's Prospectors & Developers Association of Canada (PDAC) convention.
Krauth, who is the editor of Silver Stock Investor and the author of "The Great Silver Bull," said the solar industry is the main driver on the demand side. The sector accounts for 12 percent of silver consumption annually, a figure that's set to grow.
In terms of where the silver price could go in 2023, Krauth said weakness may continue into the early part of H2. However, at that point he sees the white metal moving higher, especially the in latter part of the second half of the year. He pointed to the negative correlation between silver and the US dollar, saying the currency can offer strong clues on where silver is headed.
"If anybody's looking for what might happen with silver, your first indication is what's likely to happen with the dollar," he said.
Krauth also said investors shouldn't be overly concerned about the precious metal's current downturn. "Don't let this recent pullback scare you. I think that the fundamentals are as strong as ever and improving constantly for the silver market," he said.
Watch the interview above for more from Krauth on the silver market, including a number of silver stocks he's watching right now. You can also click here for the Investing News Network's full PDAC 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 the interviews it conducts. 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.
