Bayer, Blackrock Silver, Siemens - Confidence is rising

Inflation provides support

In Germany in particular, the fear of inflation has a long historical precedent. In the Great Depression during the Weimar Republic and after the Second World War, Germans lost a lot of wealth. Even now, the ultra-loose monetary policy of the central banks and the negative interest rates on savings accounts are causing panic about a renewed devaluation of money. As a result, investors are increasingly turning to the stock and real estate markets. Historically, however, precious metals such as gold and silver have proven to be the best protection against inflation and as a crisis currency.

The precious white metal also has the advantage that half of silver is needed as an industrial metal. The increasing processing of silver in electronics and photovoltaics should underpin demand for the metal as the energy transition and the electrification of our energy systems continue to gain momentum. In addition to buying physical silver, stocks of silver mining companies offer entry opportunities at attractive levels due to the month-long correction.

Blackrock Silver is an exploration company that stands to benefit disproportionately from the long-term rise in silver prices. The Canadians are well prepared to carry out further expansions of their properties due to the recently completed capital increase of CAD 10.0 million at a price of CAD 0.75. Blackrock Silver focuses on exploring and developing projects in Nevada, known worldwide as the "Silver State". Within the historically high-grade Walker Lane trend lies the Tonopah Silver District, which is adjoined to the west by the junior explorer's main Tonopah West project.

During the past year, nearly 80,000 meters of drilling have been completed. Sensational drill results were achieved in the process. Overall, Blackrock Silver more than tripled its land holdings at Tonopah West by staking an additional 260 unpatented ore mining claims covering approximately 21 square kilometers.

The claims cover the northwest extension of the Pittsburg-Monarch fault system. This area has the thickest veins in the Tonopah District. A total of 10 ore veins with a cumulative strike length of more than 6km have been found. According to management, an initial resource estimate is now planned no later than November of this year. With the powerfully expanded area and historically high-grade property, the stock promises enormous potential. Get your foot in the door ahead of the resource estimate before it's too late.

Forecast up, share down

Despite an increase in annual forecasts, pharmaceutical and agricultural Company Bayer plunged more than 6% to EUR 46.80, its lowest level since October last year. The rupture of critical support zones abruptly stopped the recent stabilization attempt of the share. Technically, there is now even a threat of a fall below the EUR 40 mark, which would mean a 10-year low.

The Leverkusen-based Company disappointed investors with a significantly higher than expected drop in earnings in the second quarter. The glyphosate lawsuit wave and higher costs and currency effects were responsible for the significant decline. Overall, EBITDA pre exceptionals for the Group as a whole shrank by 10.6% to EUR 2.6 billion in the second quarter.

Positive outlook

Siemens raised its forecasts for the third time this year. However, in contrast to the Bayer Group, the Munich-based company shone with strong quarterly figures, even beating analysts' forecasts. Net profit tripled to EUR 1.48 billion compared to the third quarter of fiscal 2019/20, which was heavily impacted by the Corona Crisis. Revenue increased 21% to EUR 16.1 billion. Siemens also posted a 44% increase in orders received to EUR 20.5 billion.

With a gain of nearly 2.5%, the Munich-based company's stock was the DAX's daily winner and, at EUR 141.12, is close to its high for the year of EUR 145.96. The share continues to be a buy.

Fear of rising inflation and negative interest rates are increasingly causing savers to flee into stocks, real estate and precious metals. In the silver segment, Blackrock Silver is a promising buy candidate due to the quality of its projects. In the equity segment, we continue to see Siemens as a buy candidate, while you should keep your hands off pharmaceutical giant Bayer at the moment.