Close menu

May 4th, 2023 | 08:00 CEST

Commerzbank, Blackrock Silver, JinkoSolar - Banking crisis fuels demand for precious metals

  • Mining
  • Silver
  • Solar
  • renewableenergies
  • Banking
Photo credits:

May 3 was marked by the decision of the FED. The experts expect this to be the last interest rate hike for the time being. The interest rate increases of the past months have led customers to withdraw their money from the banks, which, however, had put the money into long-term government bonds that had fallen in value. Accordingly, First Republic was the next victim and the assets were sold to JP Morgan. Despite the interest rate hikes, inflation remains at a high level. This is one of the reasons why precious metals such as gold and silver have made significant gains recently. Silver is essential in many industrial sectors, especially in the production of solar panels.

time to read: 4 minutes | Author: Armin Schulz
ISIN: COMMERZBANK AG | DE000CBK1001 , Blackrock Silver | CA09261Q1072 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

Table of contents:

    Commerzbank - Ahead of quarterly figures

    The turbulences in the banking sector did not leave Commerzbank unscathed. However, it must be noted that European banks should be better positioned than financial institutions in America due to Basel III regulations. Commerzbank is benefiting from the rising interest rates, as the lending business constitutes a large part of its core business. Experts estimate that each percent gives the bank a plus of around EUR 600 million. This also explains the best operating result in 2022 for more than 10 years. The consolidated profit more than tripled to EUR 1.4 billion.

    The question is whether the lending business will continue to boom, as the higher interest rates could lead to a reluctance to take out new loans. Commerzbank already predicted a decline in the lending business in February, which is also due to the tightened credit conditions. After all, nobody wants bad loans on their books. Bank sources say they are trying to avoid real estate financing because there could be defaults since many private households have bought property due to the low-interest rates. With the next refinancing, the loans could no longer be manageable due to increased interest rates and higher inflation-related expenses.

    On May 17, the Company will present its quarterly figures. At the end of the month, the annual general meeting will be held, and a dividend will be approved for the first time. After the recent weak years without dividends, this should please investors. After the share price fell to EUR 8.31 following the demise of Silicon Valley Bank, it rose again to over EUR 11. Since First Republic Bank encountered difficulties, the share price has fallen again to EUR 9.68. Shares from the financial sector remain under pressure for the time being.

    Blackrock Silver - Lithium deposits expanded

    Blackrock Silver has two striking gold and silver projects in Nevada. A bonanza discovery was recently made at the Silver Cloud project, exposing up to 70 g/t gold and 606 g/t silver. The Company's flagship project is called Tonopah. It is considered one of North America's most significant silver districts with a historical background. According to an estimated mineral resource, the Tonopah West zone hosts 42.65 million silver-equivalent ounces. Last year, a new gold and silver zone was discovered on the property, which returned high-grade results at shallow depths. In addition, there is a lithium project that is operated in a joint venture.

    In October last year, a lithium deposit was found in the Tonopah North zone. The Company has granted Tearlach Resources an option to acquire up to a 70% interest in the lithium mineral, subject to cumulative exploration expenditures of CAD 15 million and completion of a feasibility study within 5 years. The Phase I core drilling programme has been completed and produced initial results. The initial discovery has been confirmed with significantly higher lithium grades than previously reported. The mineralized area has been extended to 2.0 x 2.75 km following results from 8 of its 11 drill holes. Tearlach expects to release its maiden mineral resource estimate before the end of 2023.

    This means Blackrock Silver has three irons in the fire. A 4,300m drill programme is due to start on the Silver Cloud project before the end of May, which will test up to 500m of strike potential from the discovery. After the announcement of the private placement, which ultimately brought CAD 4.38 million into the coffers, the share came under pressure and fell to CAD 0.275. The share then rose by more than 40% to CAD 0.39. Since then, the share has been consolidating and is currently trading at CAD 0.335. In view of the fact that renewable energies are being promoted and silver is essential for the production of solar modules, the demand for silver should increase and, with it, the price of silver.

    JinkoSolar - Strong 1st quarter

    Rising energy costs ensure that, where possible, more and more private individuals have a solar system installed on their roof, as the investment should have paid for itself within 3 years. The expansion of photovoltaics is also being driven forward in other areas - ideal conditions for JinkoSolar. The Company was also able to confirm this with its figures for the 1st quarter. The demand for solar modules increased by more than 60% compared to the previous year. Interestingly, China, in particular, is driving the expansion of renewable energies.

    Revenue increased 58% YOY to USD 3.4 billion, while net profit rose to USD 114.8 million. The Company also achieved an increased gross margin of 17.3%, compared to 15.1% in the previous year. In addition, JinkoSolar successfully issued USD 1.4 billion in bonds to support capacity expansion for advanced N-type cells. JinkoSolar's 2023 order book exceeds 60%, with overseas orders accounting for the largest share. Overall, the Company is posting solid financial results and strong demand for its products.

    The increased margin is due to a decline in polysilicon prices. It remains to be seen whether the rising silver price will have a negative impact on the upcoming quarterly figures. Should the margin shrink again, that would be one of the reasons. The quarterly figures provided positive momentum for the share, but it was not enough to break out of the sideways phase between USD 42.41 and USD 51.71. From a chart perspective, the share still has to close the gap to USD 56.16.

    After the silver price had been really low for a long time, silver production declined. Now that demand is growing and the silver price is rising, people could invest more in the precious metal again. Especially since silver is seen as an entry point for private investors for whom gold is too expensive. Commerzbank is currently under pressure from the financial turmoil. Inflation and monetary system uncertainties drive investors into precious metals. Blackrock Silver holds both gold and silver. Recently, lithium has also been added to the portfolio. JinkoSolar needs silver for its production, and increasing demand has led to strong figures in the first quarter.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author

    Related comments:

    Commented by André Will-Laudien on December 7th, 2023 | 08:50 CET

    Snow chaos and climate madness, who is playing in the Premier League of the energy transition? Nel ASA, Power Nickel and Plug Power under the microscope

    • Mining
    • Nickel
    • BatteryMetals
    • renewableenergies
    • Energy

    Snow chaos and new record highs. While the DAX 40 demonstrates itself as the world's best blue-chip index, the German economy is currently navigating downward. It is not the earnings outlook that is presently driving share prices but the hope of lower interest rates. Meanwhile, the endless climate debates in Dubai continue. Among realists, however, there must be fears that the local oil lobby will not let a German know-it-all put a stop to the lavish margins with fossil fuels. There will, at least, be a friendly Arab nod to the 2050 climate goals and exclusive indulgence for the high-ranking German delegation. Whether this justifies federal expenditure of more than EUR 50 million is something we will leave uncommented. More important is a look at the top titles of the upcoming energy transition - where is the next 100 percenter lurking?


    Commented by Armin Schulz on December 6th, 2023 | 08:00 CET

    Siemens Energy, Defense Metals, Rheinmetall - Rare earths as a risk factor

    • Mining
    • RareEarths
    • renewableenergies
    • armaments

    The scarcity of and access to rare earths has become a major global concern. China plays a decisive role in the production of rare earths, as the country mines 60% of all rare earths worldwide and processes 85% of them. After the US banned the export of AI chips, China considered banning the export of rare earth metals. These trade blockades from both sides are causing tensions in international trade relations and concerns about supply bottlenecks. Rare earths play an important role in wind power, armaments, medicine, electromobility and the electronics industry. As an investor, one should be aware of these risks.


    Commented by Stefan Feulner on December 6th, 2023 | 07:20 CET

    Rock Tech Lithium, Altech Advanced Materials, Continental - There is a lot of movement here

    • Mining
    • Lithium
    • Technology
    • Batteries

    The final few weeks of the year are packed with activity. Before the Christmas tree is decorated and the goose is on the table, several companies are planning significant capital measures for the future. The general conditions appear favorable, as the German leading index, DAX, is on the verge of reaching a new all-time high. Technology stocks have also switched back into rally mode in recent days, boosted by the expected loose monetary policy.