Silver mining stocks are very popular these days because the precious metals market has seen an unprecedented bull market that shows no signs of currently slowing down. This bull market has been fuelled by concerns that the US Dollar and the Euro will continue to show signs of weakness in the near future as America and Europe continue to use “easy money” fiscal policies to jumpstart their lagging economies.
As long as America and Europe continue to use an “easy money” fiscal policy, precious metals and securities that are based on the performance of precious metals seem to be viable investment options. One of the most popular securities based on the performance of precious metals are silver mining stocks. This is the case because many investors feel that silver has an opportunity to increase in value in response to the heavy demand for gold, platinum and other precious metal products.
Silver Mining Stocks: A Brief Introduction
Silver mining stocks are very similar to other stocks that are actively traded on most of the world’s major stock markets. These stocks are securities that entitle owners to a “share” or a stake in mining companies who extract and process silver bullion from the world’s known silver reserves. Their value is often determined by currency exchange rates, trading volume, the price of silver and the profitability of the mines.
As a result, investors who purchase silver mining stocks have an opportunity to capitalize on more than just the price of silver. This allows investors to diversify the risks associated with owing stocks and precious metals. This is true because the value of the silver mining stocks is determined by a combination of factors that reduce the risk of being exposed to the price and market volatility that exists in the securities and precious metals markets.
Short List of Silver Mining Stocks
This list includes a range of minor and major producers of silver whose stocks could help investors take advantage of one of the hottest precious metal markets in recent memory. Please use this list as a way to get started in your own research of silver mining stocks. If you need help or more information, please ask an investment advisor for assistance.
Here are five producers of silver whose stocks are worth a serious look for investment purposes:
- SilverCrest Mines (TSXV symbol: SVL).
This British Colombia-based silver mining company extracts silver and gold from several well known mines in Mexico and El Salvador. Its strong financial position and high-extraction techniques have allowed it to thrive. As a result, it is one of the Canada’s strongest small-cap producers of silver.
- SilverMex Resources (TSX symbol: SMR).
This Vancouver-based mining company is another small-cap silver producer. It concentrates only on mining silver from their extensive holdings in Mexico. Many of these resources are near the surface which has helped SilverMex reduce its production costs and maintain a high leverage profile relative to the price of silver. As a result, its short-term and long-term outlook seems bright.
- Pan American Silver Company (TSX symbol: PAA).
Pan American Silver Company mining silver from several large holdings found in Mexico and South America. It is a large-cap company that strives to keep per-unit production costs down with efficient mining and processing techniques. Raw first-quarter profit data suggest they will be on target for another strong year as per-unit costs for their silver mining operations stayed well below their target estimates.
- Silvercorp Metals Inc. (TSX symbol: SVM).
This company only began production in 2006. However, it is already one of the major players in the silver industry in China thanks to its majority stake in the largest silver producing areas in the region. As a result, this large-cap silver mining company has a chance to grow into one of the region’s biggest silver mining companies.
- Silver Standard Resources Inc. (TSX Symbol: SO).
This young company exploits silver resources in America, Canada, Chile, Mexico and Peru. It is a large-cap company that has good possibilities for future growth thanks to an aggressive exploration campaign which the company feels will lower its per-unit costs drastically. If this holds up, Silver Standard Resources Inc. could be a major player in the silver industry for years to come.
Of course, if you don’t want to invest in silver stocks, then think about investing in gold mining stocks, or even physical bullion like gold coins. If you’re still not interested in stocks or bullion, considering looking into investing in an ETF.