Top Silver Stocks To Purchase Now For 2022

 

In times of economic recession, investors often seek to mitigate risk by turning to precious metals as a means of diversifying their investment portfolios. Silver, both in physical form and in the form of silver stocks (shares of companies engaged in silver extraction and production), has historically shown resilience during past recessions. The question arises: will 2022 witness an increase in the price of silver stocks? And, if so, what are the most promising silver stocks to consider? Is it Possible to Buy Silver Like Stocks? While many silver investors prefer physical ownership and storage of the metal, this approach has its drawbacks. Due to silver’s relatively lower cost compared to other precious metals like gold, accumulating a substantial investment in silver can present storage challenges. Unlike gold, which is valued in five figures per pound, the price of a pound of silver falls within the lower triple digits. Consequently, investing in silver would require approximately 100 times more storage space than an equivalent investment in gold. Another drawback of physically holding silver is the potential time it takes to liquidate assets. Selling physical holdings can be a significantly slower process compared to executing a sell order on an online stock trading platform. Fortunately, there are alternative investment options. Some exchange-traded funds (ETFs) focus on physical silver holdings, allowing investors to purchase shares without the hassle of storage or shipping. Another way to participate in the silver market is by investing in silver stocks. These stocks belong to companies involved in silver extraction and processing, known as “miners,” as well as companies engaged in silver resale, known as “streamers.” Investing in silver stocks offers investors exposure to the silver market without the need for physical metal ownership.

What Are the Best Silver Stocks to Watch? Here are some of the top silver stocks to keep an eye on:

1. First Majestic Silver Corp. (AG): First Majestic Silver Corp. ranks among the world’s largest silver producers and is the largest primary silver producer in Mexico. In the second quarter, the company reported total production of 7.7 million silver equivalent ounces and generated revenue of $159.4 million, marking a three percent increase compared to 2021.
2. Pan American Silver Corp. (PAAS): Pan American Silver Corp. holds the position of the fourth-largest silver producer globally and operates in Peru, Bolivia, Mexico, and Argentina. In the second quarter, the company produced 4.5 million ounces of silver and reported revenue of $340.5 million.
3. Hecla Mining (HL): Hecla Mining is responsible for 40% of all silver produced in the United States and stands as the oldest precious metals mining company listed on the New York Stock Exchange. The company operates in multiple states, including Alaska, Idaho, and Nevada, and has mining operations in Mexico and Canada. Hecla Mining anticipates achieving an annual production of 17 million to 20 million ounces, as per its investor presentation.
4. Wheaton Precious Metals Corp (WPM): Wheaton Precious Metals Corp. is the world’s largest silver streaming and resale company. The company acquires rights to purchase silver from miners at a fixed, low cost, allowing it to profit from distribution. Wheaton reported revenue of $303 million in the second quarter, surpassing estimates by $6.4 million. The company forecasts a 30% increase in production based on a 10-year annual average.

How Can You Buy Silver Stocks? Once potential investors have identified the best silver stocks to consider, they can invest by purchasing shares of these companies on the appropriate stock exchange, such as the NYSE or Nasdaq. Silver, Silver Stocks, and Recessions Throughout history, silver has proven to be a sound investment during periods of economic recession. As traditional assets like stocks and cash become riskier due to market volatility and inflation, investors often seek refuge in precious metals as a safer store of value. If silver is perceived as a lower-risk asset during a recession, more investors may allocate their capital to it, potentially driving up its price. When the value of silver increases, it often leads to higher valuations for companies operating in the silver industry. However, unlike some other precious metals, silver derives a portion of its value from industrial uses. Silver plays a crucial role in the manufacturing of various products, including electronics and components for alternative energy sources such as RFID chips, semiconductors, and solar panels. If a recession diminishes the demand for silver in manufacturing, it could counterbalance any added value resulting from increased investment demand. Consequently, silver’s relationship with the economy is less straightforward than that of other precious metals. Investors considering diversification into silver and silver stocks may need to conduct comprehensive research on current trends in both manufacturing and the broader economic landscape.

Are Silver Stocks a Promising Investment?

Could silver stocks prove to be a sound investment in 2022? Some experts believe so. Keith Neumeyer, CEO of First Majestic Silver Corp., has expressed optimism that silver could reach $100 per ounce in the near future, with the potential to go even higher, possibly reaching $1,000 per ounce. In such a scenario, both physical silver and silver stocks could offer attractive long-term investment prospects. The bullish sentiment surrounding silver stocks is partly attributed to silver’s significance in various industries. In addition to its current applications in electronics, silver plays a vital role in photovoltaic cells, converting solar energy into electricity. As the world continues to invest in alternative energy sources, the demand for silver may surge, potentially leading to price spikes. Investors hope that silver will eventually decouple from other precious metals and move independently based on manufacturing supply and demand. Keith Neumeyer has noted, “We’re consuming, as a human race, over 1 billion ounces of silver annually, and miners are only producing about 800 million ounces a year, and that’s been dropping for three consecutive years.” If this upward demand trend persists, both silver and silver stocks could deliver substantial profits for investors.

Get back to Seikum News 🤓