Silver prices have been going up for a while now. They were around $12.25 per ounce at the beginning of 2020, but by September 2021, they had gone up to $22 per ounce. Silver stocks have also grown a lot over that time, but some people think they will grow even more in the future.
Like other companies, silver mining operations struggled to generate production growth in 2020 because of pandemic-related shutdowns and extended periods of being understaffed. However, the bulls argue that the potential for meaningful gains is ahead as these companies start to reproduce growth.
Like in any other type of stock market, there are different silver companies. Each company has its opportunities and challenges.
You own shares of Apple, Amazon, and Tesla. Why not Banksy or Andy Warhol? Their art doesn’t go up and down with the stock market. And they’re cooler than Jeff Bezos.
Get Priority Access
Best Silver Stocks to Buy
There is a belief that the price of silver will go up. People are worried that the Federal Reserve’s tapering of economic stimulus will make it hard for the stock market. So people are talking about safe-haven investments, including gold and silver. But what are the best stocks in this category? Here is a list of some top players in the silver game.
1. Pan American Silver Corp (NASDAQ: PAAS)
Pan American Silver is a Canadian company in Mexico, Peru, Bolivia, and Argentina. It is one of the largest silver mining companies in the world and has a market cap of over $5 billion.
In 2020, the COVID-19 virus drastically impacted the output of silver miners. In 2019, the business produced 25.9 million ounces of silver, but just 17.31 million in 2020. However, production is starting to pick up again.
In the first half of 2021, the firm generated 9,1 million ounces of silver. If it continues at this rate, it will have 18 million ounces in 2021. It represents an increase of about 4 percent. And other analysts consider this forecast to be conservative.
Several good things are happening for the company. It has five current exploration projects in the United States, Mexico, Argentina, and Peru. It could lead to mining many deposits on nearly 1.5 million acres.
The company has a variety of operations and exploration opportunities in different countries around the world. It gives investors a sense of security, just like a stock portfolio. Miners must diversify their holdings so that if one mine dries up, they have others to fall back on.
PAAS’s most recent financial report was outstanding. It did better than expected in revenue and earnings but didn’t reach analyst expectations. However, some think the analysts might have set the bar too high.
For example, take the second quarter. Revenue came in at $382.13 million, which was up more than 53% year over year. The earnings performance was even more impressive. Net income increased more than 253% to $70.94 million, while diluted earnings per share increased 240% to $0.34.
The second quarter and two before it saw good growth.
Before adding any stocks to your portfolio, pick the best companies. You can use a stock screener to locate the most profitable companies. Screeners like Trade Ideas can help you find good companies that meet your needs.
2. Hecla Mining (NYSE: HL)
Hecla Mining is a company that has been around since 1891. It is one of the longest-lived precious metals mining companies in the world. Hecla Mining produces nearly half of all U.S. silver, which is a lot!
The company’s primary operations are in the United States. However, it also has active mining operations in Canada. Like any successful mining company, Hecla always looks for new opportunities to expand. It is currently working on developing two new mines in Montana.
The company has eight active exploration projects in the U.S. and three in Canada. The company also plans on expanding its international efforts into Mexico with the San Sebastian exploration project in Durango.
Hecla doesn’t only focus on silver; it also has several gold mines. This diversification means that Hecla is more stable and can pay annual dividends for the past 31 years.
The company had an excellent second quarter. They beat analyst expectations for earnings per share but missed expectations for revenue. Even so, the company grew significantly during that time.
The company’s revenue grew more than 31% to $217.98 million during the quarter. This growth was due to an increase in net income of more than 105%, which climbed to $785,000. Additionally, the company experienced significant growth in net profit margin, operating income, and cash on hand.
3. Wheaton Precious Metals Corp (NYSE: WPM)
Wheaton Precious Metals was founded in 2004. It is one of the largest precious metals companies in the world. The company has a market capitalization of nearly $19 billion. Wheaton Precious Metals was initially formed as a subsidiary of Goldcorp, one of the world’s largest gold producers.
WPM differs from most other silver companies because it focuses on silver streaming. It means the company gives money to mining companies to build and operate mines. In return, WPM gets a discounted chance to buy all or part of the silver produced by these mines.
Wheaton is doing well because it has a good business model. People know about it, and it makes money. It is more profitable than other mining companies.
The stock was down around 16% from its price just a year ago. While some people may not want to invest in the stock because of this, others see it as an excellent opportunity to make money. The company’s revenue and profits are increasing, so the stock’s current value will not likely last long.
Wheaton’s revenue was much higher than analysts had predicted in the second quarter. Although earnings were not as high as analysts had hoped, the company still showed significant growth. In the quarter, revenue increased by 33.25% to $330.39 million. Net income went up by 57% to $166.12 million, and earnings per share increased by 60.87%, reaching $0.37. Wheaton also performed well in most areas, including net profit margin, operating income, cash on hand, and cost of revenue
4. First Majestic Silver Corp (NYSE: AG)
First Majestic Silver is a company that mines silver. It was founded in 2002 in Canada, but most of its operations are in Mexico.
Currently, the firm controls twelve mines. Three of the four producing mines of the corporation are located in Mexico, while one is in Nevada. The company produced 11.7 million ounces of silver last year from these mines.
First, Majestic Silver is already a producer of silver. Still, it has twice the number of exploration and development projects in the works. These mines that are being developed will increase production substantially in the future.
The company’s recent move to add diversification to its business model has attracted investors. In mid-2020, the company announced that it had agreed with First Majestic Silver, which brought First Majestic into the silver-streaming industry. This new opportunity presents strong growth prospects for the company on the mining side of the industry. As a result, it is one of the strongest silver mining stocks available today.
First, Majestic had a fantastic quarter. Their revenue increased by 342.04% from the year before to $154.07 million. Their net income and earnings also increased by 256.49% and 220%. They made a lot of progress with their profit margins, operating income, the net change in cash, cash on hand, and cost of revenue.
5. Endeavour Silver Corp (NYSE: EXK)
Endeavor Silver is one of the small businesses on this list. It has a market capitalization of just over $740 million. However, it is not the youngest company on the list. It was established in 1981. In its early phases, the company wanted to remain small to hone its skills. Nonetheless, the company is reinventing itself and expanding. Investors are starting to notice, and the stock price is increasing.
Endeavor is a Canadian company that operates primarily in Mexico. It has two producing mines in Mexico. The company is also close to deciding on whether to develop a third mine in Mexico. If it does, this could be a big positive for the stock and send it higher.
Endeavor is looking to expand its global footprint. The company has six ongoing projects in Mexico and Chile. These projects could make Endeavor a major player in the silver production industry.
In the second quarter, Endeavor Silver had a lot of growth. Their revenue was up 136.5%, and their net income was up 302.37%. Their earnings per share went up 300% to $0.04. They grew more than 100% in almost every metric you could think of!
6. Silvercorp Metals (NYSE American: SVM)
Silvercorp Metals is a Canadian silver mining company. It does not mine in Canada; instead, it focuses on China.
Ying District is an area in China where the company has mined 66 million ounces of silver since 2006. The district is also a strong producer of zinc and lead, with the company having produced 883 million combined pounds since 2006. There is one thing to consider, though.
The Chinese government has been making many changes lately that have worried some people. It has led to the stock market dropping, including Silvercorp’s stocks. Silvercorp is a company that has most of its operations in China, so it has been affected by the stock market decline.
Some investors view the declines in China’s regulatory conditions as an opportunity. Due to geopolitical risk, the stock is severely undervalued relative to its rivals by practically all valuation metrics.
Some say this company’s stock price drop is unjustified. This company’s bottom and top lines are strong, indicating overall success. If you’re lucky, this risky investment could yield good long-term profits.
Some people have not followed Silvercorp as closely as they would like, but in recent quarters that has started to change. In the first quarter, recognized analysts released their initial forecasts. In the most recent quarter, revenue and profitability exceeded forecasts.
The company’s revenue increased by 25.94% from last year. However, the company’s earnings per share decreased by more than 22% because of the money the company spent on exploration and development. But even though the wages were down, they were better than analysts predicted. The company’s operating income improved, along with its cash on hand and cost of revenue. So, in the end, the company did pretty well financially.
7. Fortuna Silver Mines Inc (NYSE: FSM)
Fortuna Silver Mines is a traditional mining company. It focuses on silver, but it also produces gold. The company expects between 178,000 and 202,000 ounces of gold this year.
The company is headquartered in Vancouver but has no new projects planned in Canada. It operates mines in Mexico, Argentina, Peru, and North Africa. The company has seven exploration projects.
The growth the company has seen recently is awe-inspiring.
However, that production growth can be attributed to opening a new mine. The Lindero mine in Argentina started producing precious metals in October 2020. It has been a very successful mine, adding significant value to the company’s top and bottom lines.
Fortuna Silver is a company that is increasing. They are expanding through the development of new mines. This growth is expected to continue for a long time, so their stock is worth watching closely.
Fortuna Silver is known for beating analyst expectations. They did it again in the second quarter but didn’t make as much money this time. But when you look at how much their revenue has grown, you can see there’s nothing to worry about.
The company’s revenue and earnings per share increased significantly during the quarter. Net income and operating income also saw a large increase. As with most other companies on this list, the company saw significant growth in cash on hand.
8. iShares Silver Trust (NYSE Arca: SLV)
There is another option if you want to invest in silver stocks but don’t want to choose your stocks or manage a portfolio.
Exchange-traded funds (ETFs) are investment-grade funds you can buy and sell on stock exchanges. These funds invest in many different stocks based on what is in the fund’s prospectus.
If you are interested in investing in silver stocks, one of the most popular ETFs is the iShares Silver Trust. This fund invests in physical silver, which makes it a good investment if you’re worried about inflation.
One of the most popular metals worldwide is silver. It is a good store of value and does not cost as much as other metals, like gold. Platinum and palladium are more expensive than silver.
Just like with any other industry, it’s important to remember that not all silver stocks are the same. Some may expand faster than others, while others will collapse completely, costing investors money. It’s important to research and understand what you’re buying before investing.
Frequently Asked Questions About Silver Stocks
Can You Buy Silver on the Stock Market?
You can buy silver stocks through a broker or an exchange. You can also purchase silver online through a platform or an app. There are many different types of silver stocks so that you can invest in a mining company.
How Can I Invest in Silver Stocks?
There are a few ways to buy silver. The most common way is buying coins and bars. But some people invest in exchange-traded funds or ETFs. These ETFs are backed by physical silver, or you can invest in funds or mutual funds that hold mining stocks.