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January 30, 2024
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More than just a Silver Investment
In Brief: The benefits of investing in a silver business company, include the potential for capital appreciation, income generation, and portfolio diversification. Additionally, 7 stock pick on the silver-focus companies and ETFs.
For thousands of years, silver has been used as a form of currency and a store of value. Today, it continues to be an important asset class for investors seeking to diversify their portfolios and protect their wealth. In recent years, the price of silver has been on the rise, driven by increasing demand from both the industrial and investment sectors. Thus, investors are becoming increasingly interested in silver mining companies as a way to gain exposure to this precious metal.
Why invest in a silver-focused company?
Adding silver to an investment portfolio can help diversify risk and reduce the overall volatility of the portfolio. Inflation and currency fluctuations can be hedged against by silver, which often behaves differently than other asset classes like stocks and bonds.
Silver is used in a wide range of industrial applications, including electronics, solar panels, and medical equipment. In response to the growth in global demand for these products, the demand for silver is likely to increase, resulting in a higher price for silver and an increase in profits for silver producers.
Investing in silver can be beneficial due to the potential for capital appreciation: If the price of silver rises, the value of a company that produces silver will also rise, which can result in capital appreciation for investors. In addition, some silver mining companies pay dividends to shareholders, which can provide a steady source of income for investors.
Silver is the most undervalued asset of a generation.
4 silver-focused companies listed on Nasdaq
Here are 4 companies listed on Nasdaq that have silver as their core business focus.
Hecla Mining Company (HL)
A leading U.S. silver producer with operations in Alaska, Idaho, and Mexico, Hecla Mining Company is one of the country’s low-cost silver producers. Hecla Mining Company is not only a silver producer, but also produces gold, lead, and zinc. The company has been operating for over 130 years, and it has a long history of mining excellence throughout that time.
The company share is currently traded at $5.54 with this week increase of 10.58% and projected over 44.27% gain over a span of 5 years.
First Majestic Silver Corp. (AG)
First Majestic is a Canadian mining company that primarily produces silver from its mines in Mexico. The company operates five silver mines in Mexico and has several exploration projects in progress. In addition to silver, the company is also producing a small quantity of gold, lead, and zinc.
This week, the share price increased by 8.10% to $6.54, projecting a 12.18% gain over 5 years.
Fortuna Silver Mines Inc. (FSM)
The Canadian mining company operates silver and gold mines in Mexico and Peru. Fortuna Silver Mines Inc. has three operating mines and a pipeline of exploration projects. They produce silver and gold doré bars and sell them to customers globally.
This week, the share price increased by 6.35%% to $4.69, projecting a 45.20% gain over 3 years.
Endeavour Silver Corp. (EXK)
Endeavour Silver is another Canadian mining company that is listed on Nasdaq. The company operates three underground silver-gold mines in Mexico. The company also has several exploration projects in Mexico and Chile. In addition to silver and gold, Endeavour also produces lead and zinc concentrates.
A share of the company is currently trading at $3.08, an increase of 6.57% this week, and company had growth of over 25.20% over the last five years.
Silver-focused mutual funds and exchange-traded funds (ETFs)
Here are several mutual funds and exchange-traded funds (ETFs) that invest in silver mining companies. Most ETFs delivers efficient access to a basket of companies involved in the mining of silver and physical silver.
Most ETFs move better compare to Silver (XAGUSD) for the past week as the metal only increases by 0.22%. (data according to Kitco)
Global X Silver Miners ETF (SIL)
The Global X Silver Miners ETF is an ETF that tracks the Solactive Global Silver Miners Total Return Index, which is comprised of companies that are actively engaged in silver mining. The fund provides exposure to a diversified portfolio of silver mining companies from around the world.
The ETF price is currently trading at $27.78, which represents an increase of 6.27% over the past week.
iShares MSCI Global Silver and Metals Miners ETF (SLVP)
The iShares MSCI Global Silver and Metals Miners ETF is another ETF that invests in companies that are primarily engaged in silver mining. The fund tracks the MSCI ACWI Select Silver Miners Investable Market Index and provides exposure to companies from both developed and emerging markets.
Currently, the ETF is trading at $ 10.15, which represents an increase of 7.52% over the past week of trading.
Sprott Physical Silver Trust (PSLV)
The Sprott Physical Silver Trust (PSLV) is a closed-end trust that invests in unencumbered and fully-allocated London Good Delivery (“LGD”) silver bars.
At present, the ETF is trading for $7.29, up 2.24% over the past week.
Bottom Line
Investing in a stock or fund that focuses on silver mining companies can provide investors with exposure to the silver market and the potential for capital appreciation. However, it’s important to remember that investing in these types of funds can be risky, as the price of silver can be volatile and mining companies are subject to operational, financial, and regulatory risks. Investors should carefully consider their investment objectives, risk tolerance, and potential risks and rewards before investing in any fund.
References
Funds
- Global X Silver Miners ETF <prospectus> <factsheet>
- iShares MSCI Global Silver and Metals Miners ETF <prospectus> <factsheet>
- Sprott Physical Silver Trust <prospectus> <factsheet>
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None of the material above or on our website is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product or instrument. Investors should carefully consider if the security and/or product is suitable for them in view of their entire investment portfolio. All investing involves risks, including the possible loss of money invested, and past performance does not guarantee future performance.
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