Baker Steel’s stake in the Hemerdon tungsten project could be a real value driver

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“Silver and silver producers have been fundamentally undervalued for many years, despite a supportive macroeconomic environment for precious metals and growing industrial demand for silver,” according to recent commentary put out by Baker Steel Resources Investment Trust Ltd ().

The UK-based investment company has long had significant exposure to silver through long-standing interests in Russia and an ongoing relationship with Russian mining giant Polymetal ().

“Investor sentiment towards silver is improving,” added Baker Steel, “yet there is much room for recovery with silver having lagged gold for some time. The rising silver price highlights the positive outlook for silver miners, many of which are recovering well from COVID-19 related disruption to the industry and are benefitting from margin expansion.”

Baker Steel’s funds have held an overweight position to silver producers in recent months and the company continues to see substantial upside potential in the sector, particularly through exposure to high-quality silver producers which have strong margins and are well-positioned to benefit from higher silver prices.

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