
Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Following a sharp plunge on Monday, silver prices continued their moderate recovery on Thursday. However, analysts have warned against overinterpreting the price movements due to extremely low trading volumes, as U.S. markets are closed today for Thanksgiving. Meanwhile, concerns over high inflation in the U.S. leading up to the Trump administration’s inauguration are continuing to cloud expectations for Federal Reserve rate cuts.
Despite short-term uncertainties, the long-term outlook for silver remains optimistic. David Morgan, publisher of the Morgan Report, recently shared his projections for silver prices in 2025 and beyond. He suggested that silver could reach $40 per ounce next year and potentially hit a blow-off top around 2026.
In November 2024, Jason Weber, President, CEO, and Director of Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF), provided a detailed introduction to the company’s primary assets during an interview with METALS 100. These assets include the 100%-owned Haldane Silver Project and the Tim Silver Project. Silver North has completed its 2024 drilling campaign on the fully owned Haldane property in the historic Keno Hill Silver District of the Yukon.
The impact of Federal Reserve rate cuts on silver prices cannot be understated, with historical data supporting its significance. While silver prices often experience a small dip immediately after rate cuts begin, they tend to rebound and climb significantly thereafter. During the past three rate-cutting cycles, silver prices saw average peak-to-trough gains of 332%. This process typically unfolded over one to two years, offering impressive return potential.
Beyond the influence of rate cuts, analysts point to the likelihood of a U.S. economic recession in the first half of 2025, which could present another significant tailwind for silver.
Historical data from previous recessions highlights silver’s outperformance compared to gold, particularly in the periods before and after recessions. Once the recession ends, the U.S. government is expected to roll out economic stimulus measures, many of which historically target technology and infrastructure investments. These investments often rely heavily on silver, further boosting its demand.
Looking ahead, artificial intelligence (AI) could emerge as a major driver of silver demand.
Silver’s indispensable role in microchips underscores this potential, with the recent meteoric rise of companies like NVIDIA offering clear evidence of AI’s influence on the chip industry. At the same time, AI requires massive amounts of energy, significantly raising the demand for efficient energy solutions. While big tech companies are exploring nuclear energy for powering data centers, solar energy stands out as a uniquely advantageous option.
With silver-intensive solar panels, solar power is poised to meet growing energy demands for data centers, making it a key player in the energy landscape shaped by AI.