Russia is Adding Silver to its Reserves: Squeezing Dwindling Silver Supplies.
Russia's Strategic Move: Adding Silver to Reserves to Capitalize on Global Supply Shortages
Russia's central bank has recently announced plans to purchase silver as part of its reserves, a decision that could have significant implications for the global silver market.
This move marks them doubling down on their gold accumulation record and de-dollarization strategy. By bringing Gold’s little sister Silver along, all of Russia’s friends in BRICS will join in the joy ride.”- Silver Academy’s Jon Forrest Little
Adding Silver to their traditional focus on gold reserves and reflects a broader trend of diversification among central banks. Historically, Russia has concentrated on accumulating gold, but it has also begun adding platinum and palladium to its reserves, aligning with its status as a major producer of these metals.
Russia’s Draft Federal Budget for the upcoming year includes provisions for the Russian State Fund, which acts as the central bank, to continue acquiring gold, platinum, and palladium while also venturing into silver for the first time.
This is particularly noteworthy given that Russia ranks as the world’s eighth-largest silver producer, with an annual output of approximately 38.5 million ounces. The decision to accumulate silver will have massively positive and explosive impacts on the the Silver market.
First and foremost, this acquisition is likely to drive up silver prices substantially, with some analysts predicting an increase of 50% or more within the next year.
The global supply of silver is already struggling to meet rising demand, and Russia's purchases could further tighten an already constrained market. The increasing use of silver in industrial applications—such as photovoltaic technology, aerospace, military, AI, 5G and electrical conductivity—has led to supply shortages that are becoming more pronounced.
Historically, central banks in countries like the United States, India, and Mexico have held silver as part of their reserves. Russia's move will signal a return to this practice, influencing other nations to follow suit. While silver may be less critical to Russia's economy compared to gold this acquisition is most definitely a strategic decision given that US discourages Silver and wastes most of it on bombs.
Since 2011, silver prices have lagged behind those of gold and palladium, suggesting that there is significant room for growth.
As Russia moves forward with its plans to accumulate silver, the global precious metals market is likely to experience substantial shifts. This will lead to a bullish trend for silver in the coming years, making it an intriguing investment opportunity for those watching the market closely.
While US banks are closing and under systemic risk due to bad commercial real estate loans and the zero reserve requirement, gold and silver are the only two safe assets remaining.
Now that we have proven (and so has Russia and BRICS) that Silver is about to Explode, it’s time to profit from Silver Mining acknowledging that the World is Rapidly Running out of Silver
Our Top 5 Silver miners are up 51.4% (averaging 6 months to year, 9 months)
Silver Academy picks out performing SILJ by over 20%
Silver Academy endorses only 5 Silver miners that are pure silver mines (not silver as by product mines)
We have selected our picks based on the strength of:
Their balance sheets
Their Ore grades
Their Metallurgy
Their Management talent
Their Jurisdiction.
and most importantly their volume of ounces in the ground
Silver Academy’s top 5 picks
Andean Precious Metals: TSXV: APM, OTCQX: ANPMF
The company operates the largest commercial silver oxide processing plant in Bolivia's Cerro Rico region - the San Bartolomé facility. This strategic asset has produced over 65 million ounces of silver equivalents since 2009, demonstrating Andean's significant production capabilities.
Their robust balance sheet provides the company with financial flexibility and stability in a volatile industry.
The company follows a two-pronged growth strategy, focusing on organic growth in Bolivia and expansion through mergers and acquisitions in the wider Americas. This approach positions Andean for sustainable long-term growth and diversification.
Andean has successfully extended the life of the San Bartolomé mine from eight months to potentially 10 years or more, showcasing the company's operational expertise and ability to maximize asset value.
The company is committed to sustainable mining practices and community engagement, contributing approximately $75 million annually to the local economy through wages, royalties, and taxes. This dedication to social responsibility strengthens Andean's social license to operate.
By acquiring Golden Queen Mining Company (USA), Andean Precious Metals has taken a significant step towards achieving its vision of becoming a multi-jurisdictional mid-tier producer in the Americas, while positioning itself for sustainable long-term growth
Aya Gold & Silver: TSX: AYA, OTCQX: AYASF
Aya Gold & Silver Inc. is a leading silver producer, uniquely positioned as the only pure silver mining company listed on the TSX, with a strong operational base in Morocco. The company has recently reported record revenues of $13.7 million in Q2 2024, reflecting a remarkable 42% increase from the previous year, showcasing its robust growth trajectory and commitment to maximizing shareholder value. With ongoing expansions at the high-grade Zgounder Silver Mine, Aya is set to increase its processing capacity to 2,700 tonnes per day in 2024, further solidifying its market presence. Additionally, Aya's strategic exploration efforts have led to significant mineral resource estimates, including a recent discovery at the Boumadine project, which highlights the company's potential for future growth and profitability. Committed to sustainability, Aya Gold & Silver integrates responsible mining practices into its operations, ensuring long-term value creation for its stakeholders
Dolly Varden Silver: TSXV: DV, OTCQX: DOLLF
Dolly Varden Silver Corporation is a leading mineral exploration company making significant strides in the heart of British Columbia's Golden Triangle, focusing on its 100% held Kitsault Valley Project. This project boasts an impressive resource estimate of 64 million ounces of silver and 1 million ounces of gold, positioning Dolly Varden as a key player in the precious metals sector. The company is committed to sustainable mining practices while leveraging its rich history, including the past-producing Dolly Varden and Torbrit silver mines, to unlock further potential in the region. With a strong management team and recent discoveries enhancing its growth prospects, Dolly Varden Silver is poised for a bright future in the booming silver market. Investors can look forward to exciting developments as Dolly Varden continues to advance its projects and expand its resource base.
Outcrop Silver: TSXV: OCG, OTCQX: OCGSF
Outcrop Silver is advancing its flagship Santa Ana project in Colombia, one of the highest-grade primary silver deposits globally. The maiden resource estimate defines 24.2 million ounces of indicated silver equivalent at a grade of 614 grams per tonne and 13.5 million ounces of inferred silver equivalent at 435 grams per tonne. Recent metallurgical testing has yielded outstanding recoveries of 96.3% for silver and 98.5% for gold through a combination of gravimetric and flotation methods, significantly enhancing the project's economic potential.
With two active drill rigs, 2024 is a pivotal year for Outcrop Silver as the team explores new high-priority targets along the 17-kilometre permitted corridor, part of the project's extensive 30-kilometre strike mineralized trend. Looking ahead to 2025, Outcrop Silver remains focused on substantial resource growth and unlocking the full potential of this silver-rich region. The company’s success is underpinned by both impressive drilling results and strong community relationships, which are key to driving sustainable growth.
Outcrop Silver is uniquely positioned to capitalize on silver market dynamics, reinforced by Eric Sprott's increased investment to 19%, a clear vote of confidence in the project's potential and strategic direction.
Kuya Silver: CSE: KUYA, OTCQB: KUYAF
Kuya Silver is at the forefront of silver mining with its dual-track strategy, actively mining the high potential Bethania Silver Mine in Peru and developing the historic Silver Kings Project in Ontario. With robust mining and exploration programs underway, Kuya is poised to unlock significant value from its assets. Kuya Silver's experienced management team, led by industry veterans, is dedicated to maximizing shareholder value through strategic growth and operational excellence. As the demand for silver continues to rise, Kuya Silver stands ready to capitalize on emerging opportunities in the market.
end of section