Close menu

September 22nd, 2021 | 13:33 CEST

Steinhoff, Silver Viper, BYD - Buy when the guns are thundering!

  • Silver
Photo credits:

Right now, it is not an easy time for silver fans. After Reddit traders joined forces at the beginning of the year and shot the precious metal not "to the moon", but at least to a high of USD 30.06 per ounce, a sharp correction started, which has led to around USD 22 as of today. Technically, there is still room to go down. Still, from a fundamental perspective, silver is a clear long-term buy because the white metal can support in crisis and is also crucial for producing renewable energy.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: STEINHOFF INT.HLDG.EO-_50 | NL0011375019 , SILVER VIPER MINER. CORP. | CA8283341029 , BYD CO. LTD H YC 1 | CNE100000296

Table of contents:

    Metal with double function

    In contrast to its big brother, silver plays a dual function. On the one hand, like gold, it is considered a crisis currency and protection against inflation. Due to the current circumstances with high inflation rates, excessively rising national debts and interest rate levels at historic lows, it belongs as an admixture in every diversified portfolio for this reason alone.

    However, due to the acceleration of the energy transition in the next few years, silver has another ace up its sleeve as a strategic industrial metal. The demand from the electric car industry alone is enormous. According to estimates by the Silver Institute, between 0.5 and 0.9 ounces of silver are used in vehicles with an internal combustion engine. Purely electric cars already use more than 3 ounces of silver. According to estimates, demand for silver from the automotive industry is expected to grow strongly in 2021 compared with the previous year, rising to 61 million ounces according to conservative calculations. By 2025, this demand is expected to increase by more than 44% and reach 88 million ounces.

    Great potential in Mexico

    By contrast, the market for pure silver producers is manageable. The central part of silver production mainly occurs as an additional product in gold mining or the mining of industrial metals. A Canadian junior exploration company has the best prerequisites to achieve the title of a significant silver producer. On the one hand, Silver Viper is led by highly qualified managers of the Belcarra Group. On the other hand, the projects in the state of Sonora in northwestern Mexico have great potential. Besides the management, which owns 23% of the Company, mainly institutional investors believe in this potential. More than 80% of the shares are held by funds or family offices.

    The La Virginia gold-silver project, which formerly belonged to Pan American Silver, covers 6,880 hectares. In addition, Silver Viper owns 100% of the concession areas at La Virginia and has signed an option agreement regarding the acquisition of all shares in the Rubi-Esperanza claim group, which is located within these concession areas.

    A total of 27km of program completed with over 100 drill holes has expanded the database established by Pan American Silver to 80km and significantly upgraded the resource estimate. The plan now calls for resources of 154,300 ounces of gold and 6,929,000 ounces of silver and inferred resources of 246,300 ounces of gold and 12.49 million ounces of silver. With a whopping cash cushion from raised funds of CAD 6 million, the next objective is to explore the El Rubi zone, located 5km north of the historic mining area. Above-average high-grade discoveries are expected here.

    Silver Viper should be able to come up with more positive results soon. The analyst firm Red Cloud Securities issues a buy recommendation with a target price of CAD 1.30. On the stock exchange, one pays just CAD 0.54 for a share.

    Further participation to go to the stock exchange

    The share of the German-South African trading group Steinhoff delivered a huge turnaround yesterday on the stock exchange. After the stock posted a daily low at EUR 0.1479 in the wake of negative market sentiment, the share turned back into the green by the close of trading and closed at EUR 0.1780.

    The reason was positive news from the United States. The investment Mattress Firm is in the starting blocks for an IPO. According to an announcement by the Company, a registration statement on Form S-1 has been filed with the US Securities and Exchange Commission (SEC). Further data on valuation and time frame are not yet known.

    Still hovering over everything, however, is the hopefully soon to be concluded settlement. The Amsterdam District Court has now announced a decision on the Dutch settlement agreement, which was accepted by the majority of creditors for September 23.

    Steinhoff remains threatened with bankruptcy even after the successful outcome of the settlement. In addition to the settlement, there is another open flank. The former Tekki Town owners recently filed for liquidation before a chamber of the Western Cape High Court. We recommend serious investors avoid the share.

    China continues to regulate

    Even the electric car market is not immune to regulation in China. According to the government, there are too many domestic manufacturers in the Middle Kingdom. Now the market is to be consolidated. According to the government, this could be achieved through mergers. Indeed, more than 500 automotive companies in the NEV sector is a bit too high, even though the segment is growing at an incredible pace.

    In the first eight months of this year, 1.64 million vehicles with alternative powertrains were sold in China, 222% more than in the same period in 2020. This growth was driven primarily by manufacturers BYD, Tesla and SAIC-GM-Wuling. In addition, in August alone, China's production of storage batteries to power NEVs rose 161.7% year-on-year to 19.5 GWh.

    Silver is a sleeping giant, and its hermaphroditic nature will make it a long-term positive. Triumph Gold is promising as an exploration company but is still in the early stages. In contrast, BYD has already established itself in the Chinese electric car market. Steinhoff remains tight despite some positive news.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by André Will-Laudien on April 27th, 2022 | 12:26 CEST

    Barrick Gold, Desert Gold, K+S - Inflation: Is fertilizer the new silver and gold?

    • Gold
    • Silver
    • fertilizer

    Inflation and rising interest rates are an argument in favor of precious metals - that is the opinion of many investors who suspect a loss of monetary value and want to protect themselves against it. But the stock exchanges had other topics on their radar in the last few days. Because due to strongly correcting share prices, there was primarily an urge for liquidity, in part to satisfy margin requirements of the bank. Such times also lead to the realization of price gains in gold and silver. So regardless of the environment, precious metals fall at times. For the long-term investor, this is a clear buying opportunity. We look at which stocks are promising here.


    Commented by Armin Schulz on April 9th, 2022 | 07:30 CEST

    Barrick Gold, Ximen Mining, First Majestic Silver - Do precious metal stocks belong in the portfolio now?

    • Gold
    • Silver
    • PreciousMetals

    Crises like the current Ukraine war or the steadily rising inflation are good for precious metals like gold and silver. According to the German Association for Precious Metals, demand for physical precious metals increased by at least 25% in the first three months of this year. Demand had already climbed by 31% last year. But not everyone can store precious metals safely. The alternative is to invest in precious metals companies listed on the stock exchange. We take a closer look at three candidates today.


    Commented by Carsten Mainitz on March 17th, 2022 | 10:08 CET

    Uranium Energy Corp., Barsele Minerals, Endeavour Silver - Commodities for the future

    • Gold
    • Silver
    • Commodities

    We live in turbulent times: Climate change, e-mobility, traffic change. After the pandemic, the war in Ukraine is now shaking the world. Investors are fleeing to safe-havens. Precious metal prices have recently risen significantly, with the price of a troy ounce of gold moving towards an all-time high. Cryptocurrencies also made gains. Given the geopolitical and energy situation, high stock market fluctuations are still expected. Where is it worth taking a closer look now?