What Is The Best Silver Stock To Buy Now
Silver stocks operate in a highly cyclical industry. Profits for mining companies are reliant on high precious metals prices. During times of rising precious metals prices, this results in a massive windfall.
what is the best silver stock to buy now
In addition to the Excel spreadsheet above, this article covers our top 5 silver stocks today. The companies analyzed primarily focus on silver, but are also engaged in mining of other metals such as gold or zinc.
Glencore was founded in 1974 and is one of the leading companies in the mining sector. Glencore plc was the result of merging Glencore with Xstrata in 2013. The company smelts, refines, mines, processes and stores silver, copper, zinc, aluminum, nickel, cobalt, iron ore and other metals.
Glencore, which is the largest company in Switzerland, also has an energy and agricultural products segment. This makes the company the most diversified on this list. Diversification is especially valuable when considering silver stocks, considering the volatility of precious metals prices.
Glencore pays a semi-annual dividend payout of US$0.13 per share. In addition, in August the company declared a supplemental payout of $0.11 per share. In total, the stock yields 5%, making Glencore a high dividend stock.
Pan American operates silver mines in the U.S., Canada, Peru, Mexico and Argentina. The company has used acquisitions to help fuel future growth, for example acquiring Canadian precious metal mining company Tahoe Resources in 2019.
The company sells unrefined gold and silver to traders in the precious metal markets. Hecla also provides lead, zinc and bulk concentrates to smelters. Hecla has interests in Alaska, Colorado, Idaho, Montana, Canada, and Mexico.
Hecla maintains a bullish long-term view of silver, due largely to favorable supply-and-demand economic factors. The company believes that by 2030, silver demand will reach more than 1,100 million ounces if demand stays on the current trend. This compares to 2019 supply of 1,023 million ounces and demand of 1,074 million ounces.
Based on the trailing two semi-annual payments, the stock yields 3.5%, which is relatively high among silver stocks. This makes Fresnillo an appealing pick within the silver stocks, especially for investors looking for higher income.
Wheaton is the largest metal streaming company in the world. Streaming means that the company purchases the right to buy silver and gold at a low fixed cost instead of outright mine ownership. It has 24 operating mines and another 8 development projects around the world.
Investing in silver stocks is best left to those with higher risk tolerances. The companies on this list have each struggled during various portions of the past decade. Some companies have rarely recorded a profit from year to year.
The company's 2021 financial results and 2022 guidance were released in late February. Pan American Silver predicted at the time that its silver production for 2022 would come in at 19 million to 20.5 million ounces.
First Majestic Silver is a silver-mining company operating four producing mines: the San Dimas and Santa Elena silver-gold mines and La Encantada silver mine in Mexico, and the Jerritt Canyon gold mine in Nevada, US. In addition to these, the company has eight silver exploration properties and a silver stream from the Springpole gold-silver project of 50 percent payable silver.
In May, the company entered into a definitive agreement to sell Sierra Madre Gold & Silver (TSXV:SM) its past-producing La Guittara silver mine in Mexico for an aggregate US$35 million in shares. First Majestic will be granted a 2 percent net smelter royalty.
Its primary asset is the Juanicipio project in Mexico, which has silver, gold, lead and zinc mineralization. The project is a joint venture with Fresnillo (LSE:FRES,OTC Pink:FNLPF), and MAG's interest stands at 44 percent. The company is also working towards earning a 100 percent interest in the Deer Trail exploration project in Utah, US.
Fortuna Silver Mines has four operating silver mines in Argentina, Burkina Faso, Mexico and Peru. It is constructing an additional mine in Côte d'Ivoire, the Séguéla gold project, and places a heavy focus on operational sustainability.
SilverCrest Metals is developing its high-grade Las Chispas mining district in Sonora, Mexico. In 2021, the company received a top 10 position on the TSX30, which ranks the top 30 performers on the TSX over three years. It is currently working on constructing a mine at its Las Chispas project, and is aiming to begin production in the middle of 2022. The company also has the El Picacho gold-silver property only 85 kilometers by road from Las Chispas, as well as a handful of other properties it is not currently exploring.
1. Pan American Silver (TSX:PAAS) "@context":" ","@type":"Corporation","name":"Pan American Silver Corp.","url":" ","description":"Pan American Silver Corp is a mining company focused exclusively on the exploration and development of silver mines. It produced roughly 22 million ounces of silver in 2011. The company operates primarily in Central and South America. It also sells the byproducts from its silver mining operations, including zinc, lead, copper, and gold. Pan American Silver is based in British Columbia.","sameAs":,"image":" -library/image.gif?id=29648212&width=980","logo":" -library/image.gif?id=29648212&width=210" Company ProfileMarket capitalization: C$4.44 billion; current share price: C$21.46
As silver prices continue to rally higher toward decade highs, investors are turning their attention to the top silver mining companies in order to gain exposure to what could be an explosive move to the upside. Below is a list of the top silver mining companies based on their growth potential from silver production:
1) KUYA SILVER (CSE: KUYA) Kuya Silver is a newly listed silver mining company earning a 100% interest in the Bethania silver mine located in central Peru. The Company is executing an aggressive growth strategy through exploration and development and has plans to put the Bethania mine back into production. The Bethania silver mine has produced high grade silver ore with lead and zinc by-products for more than 40 years.
2) PAN AMERICAN SILVER (TSX: PAAS) (NASDAQ: PAAS) Pan American Silver has nine mining operations across North and South America. The company currently has a market cap of approximately C$8.5 billion, but its silver production accounts for less than 30% of overall revenue.
3) HECLA MINING (NYSE: HL) Founded in 1891, Hecla Mining is the oldest precious metals mining company listed on the New York Stock Exchange. The company is responsible for 1/3 of all silver produced in the United States and holds the largest silver reserve and resource in the country. In Q2 2020 Hecla produced 3.4 million ounces of silver and 59,982 ounces of gold while recognizing 24% higher revenue over the prior year period. The company has operating mines throughout the United States including Alaska, Idaho and Nevada as well as mines in Mexico and Canada.
4) COEUR MINING (NYSE: CDE) Coeur Mining operates five mines throughout North America. The company has a market cap of approximately US$1.4 billion, however silver production represents less than 26% of its overall revenue.
Silver stocks refer to the equity securities of companies that mine, process, or fabricate silver. They are considered a precious metal stock since silver is classified as a precious metal. Investors often like investing in silver stocks because they offer exposure to an asset class that may not be well represented in their portfolio. In addition, silver stocks also tend to be more volatile than other types of stocks. As a result, the volatility can provide opportunities for investors who are looking for capital appreciation. Notably, some of the more popular names among silver stocks are companies like; Wheaton Precious Metals (NYSE: WPM), iShares Silver Trust (NYSEARCA: SLV), and MAG Silver Corp (NYSEAMERICAN: MAG) just to name a few. 041b061a72