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Silver in Deficit for 'Foreseeable Future' – Dr. Quinton Hennigh

 
 SILVER in Deficit for 'Foreseeable Future' – Dr. Quinton Hennigh (photo credit: PR)
SILVER in Deficit for 'Foreseeable Future' – Dr. Quinton Hennigh
(photo credit: PR)

Silver's Shining Future: Renowned geologist Dr. Quinton Hennigh forecasts a bullish future for silver, citing a significant supply deficit and growing industrial demand.

In a recent interview with Dr. Hennigh of Commodity Culture emphasized that silver production is lagging behind consumption, with annual demand currently exceeding 800 million ounces and projected to reach a billion ounces in the near future. “We’re not building mines to replace that available silver,” he warned.

This growing demand-supply gap, coupled with dwindling reserves, has the potential to drive silver prices higher. Dr. Hennigh cautioned against expecting dramatic price spikes, as such volatility could have negative consequences. Instead, he envisions a more gradual and sustainable upward trend.

"I don’t like to see seismic price increases in silver. I think it’s bad,” he said. “I’d love to see a steady rise in silver prices over the next year or two.”

Industrial Demand and Monetary Appeal

While industrial demand, particularly from the solar industry, is a significant driver, Dr. Hennigh also highlighted silver's enduring appeal as a monetary asset. He noted historical use of silver coinage and its recent resurgence as a safe-haven asset, especially in times of economic uncertainty.

Silver, probably above and beyond gold, is actually more of a monetary metal,” he explained. “The days of silver returning as a money like we would have seen in the early 1900s probably not, but it’s still valued as a money out there, absolutely.”

As for copper, Dr. Hennigh acknowledged the growing demand driven by infrastructure projects and the green energy transition. However, he expressed concerns about the limited supply pipeline, with few new high-quality copper projects in development.

“There’s a serious lack of development in the copper space in new mines,” he said. “We need to see new mines getting built, and we’re just not seeing that capital allocated.”

A Bright Outlook for Precious Metals

Dr. Hennigh also discussed the potential impact of China’s economic policies on copper prices. While China’s overcapacity in copper smelting could temporarily dampen prices, the long-term demand outlook remains positive.

Barksdale Resources, where Dr. Hennigh serves as a technical advisor, is actively exploring the Hermosa District in Arizona, a region with significant potential for silver, copper, zinc, and lead mineralization. The company is focused on the extension of the high-grade Taylor deposit, owned by S32 Mining.

“We’re trying to find the rest of it,” Dr. Hennigh said. “We’re very confident that we’re going to find the balance of Taylor on our ground.

Dr. Hennigh's insights offer a compelling perspective on the precious metals and copper markets. While short-term volatility may persist, the long-term fundamentals remain strong. Investors and industry participants should closely monitor these markets and consider opportunities presented by companies like Barksdale Resources.

Watch the full interview:

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This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

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