Silver prices are currently hovering above the $20 mark, thanks to Brexit-related uncertainty and concerns about global economic growth. Volatile equity markets, a weaker U.S. dollar and a jittery oil market have also favored this precious white metal, which has surged 47% so far this year.
The white metal is usually considered a store of wealth and an alternative investment to risky assets in times of uncertainly. Investors’ interest in silver mining stocks has also been rekindled with recent signs of improvement witnessed in manufacturing activities in the U.S. Further, the uncertainty related to the Fed’s interest rate policy has been driving silver prices higher. A delay in raising interest rates elevates demand for precious metals, including silver, which produce no income but rely on price appreciation to lure investors.
Global mine supply production is projected to fall 5% in 2016 – the first drop in silver mine production worldwide since 2002. On the demand front, silver has multiple industrial applications. Demand is expected to rise this year. Thus, we are looking at a potential silver deficit, which in turn provides us with a solid ground for silver price gains this year.
The silver mining industry is currently ranked as the 10th best out of the 265 industries covered by Zacks. We believe investing in silver stocks now would be a prudent move given the tailwinds driving the precious metal.
Why Invest in Stocks Reaching 52-Week Highs?
The 'old-school' investors may be skeptical of buying stocks that have already bumped up their year-long highs. However, high valuations and rise in share prices do not always mean that the stock has reached its potential limit.
A strong price increase implies robust demand for the stock, which is often explained by either a good earnings performance or some positive news, which may further boost the stock price. This may carry the momentum forward a little longer, making it the ideal time for investors to get on board.
Our Picks
Today, we have shortlisted five silver mining stocks that are worthy of a place in an investor’s portfolio. Armed with a solid Zacks Rank and presently trading near their 52-week highs, these stocks appear ready to break out and chart new year-long highs.
Compania de Minas Buenaventura S.A.A. (BVN - Free Report) : This leading mining company produces precious metals and has mining rights in Peru. The stock, with a Zacks Rank #2 (Buy), has surged roughly 202.8% so far this year. The company closed at $12.96 on Friday, near its 52-week high price of $13.00.
Fortuna Silver Mines Inc. (FSM - Free Report) : This Zacks Rank #2 company is engaged in the exploration, mining and development of silver and base metal properties in Latin America. The stock has gained 286.22% year to date. Shares of the company closed at $8.69 on Friday, near its 52-week high price of $8.80.
Hecla Mining Co. (HL - Free Report) : This company is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho. It is also a growing gold producer with an operating mine in Quebec, Canada. This Zacks Rank #2 stock has surged roughly 220.11% year to date. The company’s share price closed at $6.05 on Jul 8, near its 52-week high price of $6.08.
MAG Silver Corp. (MAG - Free Report) : The company focuses on acquiring, exploring and developing district scale projects located mainly in the Mexican Silver Belt. It explores copper, gold, silver, lead and zinc deposits. This Zacks Rank #2 stock has gained roughly 19.27% so far this year. The shares closed at $14.73 on Friday, near its 52-week high price of $14.78.
Tahoe Resources Inc. : It is engaged in the exploration and development of mineral properties in the U.S. for the mining of precious metals. This Zacks Rank #2 stock has rallied roughly 90.08% year to date. The shares closed at $16.48 on Jul 8, near its 52-week high price of $16.56.
Bottom Line
With demand outweighing supply, silver is all set to shine. Therefore, it would be a prudent decision to invest in these silver mining stocks that promise higher returns and will add value to your portfolio, going forward.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Silver prices are currently hovering above the $20 mark, thanks to Brexit-related uncertainty and concerns about global economic growth. Volatile equity markets, a weaker U.S. dollar and a jittery oil market have also favored this precious white metal, which has surged 47% so far this year.
The white metal is usually considered a store of wealth and an alternative investment to risky assets in times of uncertainly. Investors’ interest in silver mining stocks has also been rekindled with recent signs of improvement witnessed in manufacturing activities in the U.S. Further, the uncertainty related to the Fed’s interest rate policy has been driving silver prices higher. A delay in raising interest rates elevates demand for precious metals, including silver, which produce no income but rely on price appreciation to lure investors.
Global mine supply production is projected to fall 5% in 2016 – the first drop in silver mine production worldwide since 2002. On the demand front, silver has multiple industrial applications. Demand is expected to rise this year. Thus, we are looking at a potential silver deficit, which in turn provides us with a solid ground for silver price gains this year.
The silver mining industry is currently ranked as the 10th best out of the 265 industries covered by Zacks. We believe investing in silver stocks now would be a prudent move given the tailwinds driving the precious metal.
Why Invest in Stocks Reaching 52-Week Highs?
The 'old-school' investors may be skeptical of buying stocks that have already bumped up their year-long highs. However, high valuations and rise in share prices do not always mean that the stock has reached its potential limit.
A strong price increase implies robust demand for the stock, which is often explained by either a good earnings performance or some positive news, which may further boost the stock price. This may carry the momentum forward a little longer, making it the ideal time for investors to get on board.
Our Picks
Today, we have shortlisted five silver mining stocks that are worthy of a place in an investor’s portfolio. Armed with a solid Zacks Rank and presently trading near their 52-week highs, these stocks appear ready to break out and chart new year-long highs.
Compania de Minas Buenaventura S.A.A. (BVN - Free Report) : This leading mining company produces precious metals and has mining rights in Peru. The stock, with a Zacks Rank #2 (Buy), has surged roughly 202.8% so far this year. The company closed at $12.96 on Friday, near its 52-week high price of $13.00.
Fortuna Silver Mines Inc. (FSM - Free Report) : This Zacks Rank #2 company is engaged in the exploration, mining and development of silver and base metal properties in Latin America. The stock has gained 286.22% year to date. Shares of the company closed at $8.69 on Friday, near its 52-week high price of $8.80.
Hecla Mining Co. (HL - Free Report) : This company is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho. It is also a growing gold producer with an operating mine in Quebec, Canada. This Zacks Rank #2 stock has surged roughly 220.11% year to date. The company’s share price closed at $6.05 on Jul 8, near its 52-week high price of $6.08.
MAG Silver Corp. (MAG - Free Report) : The company focuses on acquiring, exploring and developing district scale projects located mainly in the Mexican Silver Belt. It explores copper, gold, silver, lead and zinc deposits. This Zacks Rank #2 stock has gained roughly 19.27% so far this year. The shares closed at $14.73 on Friday, near its 52-week high price of $14.78.
Tahoe Resources Inc. : It is engaged in the exploration and development of mineral properties in the U.S. for the mining of precious metals. This Zacks Rank #2 stock has rallied roughly 90.08% year to date. The shares closed at $16.48 on Jul 8, near its 52-week high price of $16.56.
Bottom Line
With demand outweighing supply, silver is all set to shine. Therefore, it would be a prudent decision to invest in these silver mining stocks that promise higher returns and will add value to your portfolio, going forward.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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