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What are Silver Mining Stocks and why do They Matter?

What are Silver Mining Stocks and why do They Matter?

Diversifying a portfolio through precious metals can be done in many different ways. Investing in the metals themselves, or products derived from them, is one option to explore. Silver mining stocks, for examples, can yield some good money as well.

The Appeal of Silver Mining Stocks

Given the current price rise of precious metals, the industry appears to be firing on all cylinders. Noting such strong gains would not be possible without the companies providing core services. Mining firms are the lifeblood of gold and silver, and a fair few of them can be traded publicly. 

Finding the right silver stocks to invest in, however, is a bit more complex than one would imagine at first. Before making any financial commitment, it is pertinent to note which types of stocks there are and what they represent. Investing blindly is never a smart idea, thus doing research is crucial. 

Major Silver Mining Stocks

As the name would suggest, these particular types of stocks are tied to bigger silver mining operations or exploration firms, often spanning multiple active mining locations. More specifically, there aren’t that many firms that fit this category at this time. 

While investing in these stocks will often yield positive results, the buy-in price may be relatively steep as well. Given the track record of major silver stocks, the room for potential profit may also be slightly smaller. 

Mid-tier Producers

Any company capable of producing silver is worth looking into. In virtually all cases, these companies will have active mines, with potentially more in development. Depending on how much metal they can produce on a yearly basis, their market cap will be adjusted accordingly. 

One thing to look out for with mid-tier producers is whether they have any outstanding debt. If the debt vastly outweighs cash reserves or yearly production, the investment becomes a lot riskier. Thankfully, most mid-tier producers will have a healthy ratio, but digging into their public finances may be worth one’s while. 

Junior Silver Mining Stocks

Junior companies are the up-and-coming investment segment everyone is going crazy about. Given the current conditions surrounding the silver market, these are the companies likely to benefit the most. That trend can reflect favorably upon their stock price as well, although it is never a guarantee for success. 

There are many different types of junior silver stocks to explore. This particular market segment goes well beyond the concept of producing gold. Companies currently developing their first mine(s), exploring new locations, or being labeled as “project generators” can all yield significant returns if they turn out to be successful. 

The main appeal of junior silver stocks is how they are often cheaper to buy. These are also primarily companies with a market cap well below the $100 million mark. In some cases, new companies can be valued at just $2 million, with major potential for future growth. Every investment carries risks, however, including silver mining stocks.

Which Silver Exchange-Traded Products are There?

Which Silver Exchange-Traded Products are There?

In this modern day and age, investing in precious metals is a good idea. Some traders go one step further, and explore the silver exchange-traded products. Several key categories can be identified in this regard. 

Physically Backed Products

The most obvious form of silver exchange-traded products are those that are physically backed by actual silver. Speculating on price differences is great, but one rarely has anything to hold in one’s hand. With physically backed funds products, that situation is very different.

Any fund offering such an option often has ample reserves in physical silver. Whether it is bars or coins, their portfolio of net assets are precious metals. A part of it will be cash, to offer some liquidity in case a rebalancing procedure is required due to changing market conditions. 

Trading physically backed funds can be done with ease. Several different products can be explored, depending on one’s region. Some of the more famous names include Julius Baer Physical Silver Fund, Sprott Physical Silver Trust, and iShares Silver Trust. This latter one has millions of troy ounces of silver under management. 

Leveraged Products

Another popular option, albeit a far riskier one, is to invest in leveraged ETFs. These silver exchange-traded products can be denominated in either silver, gold, or other precious metals. Investors will leverage their position when they go long or short, depending on how they evaluate the current market sentiment.

Dealing with leveraged positions is always a major risk. If the market evolves in the right direction, big profits can be generated. When the market heads south, however, the losses will be a lot steeper. Investing in these types of silver exchange traded products is not advised for newcomers or people who trade based on emotions. 

ETFs Based on Futures

Exploring futures contract trading for silver and gold can be another valuable option. This requires a lot of market insight as one speculates on the price of said commodity month(s) in advance.

Given the sentiment for both silver and gold in 2020, a bullish outlook remains in place. However, blindly investing in futures and expecting the market to remain bullish may not be the most solid strategy either. Always conduct proper research before making any financial commitments.

Performance Tracking Silver Exchange Traded Products

Albeit the following investment options are a bit out of the ordinary, they can still yield significant results. When looking into silver exchange traded products, the performance tracking indexes are crucial. Different forms exist, as some will track a specific sub-Index, whereas others track silver mine stocks, for example. 

In recent years, these indexes have become more popular. That is only normal, as they represent the silver industry on a much broader level .

Gold Bug Profile: Gerald Celente

Gold Bug Profile: Gerald Celente

An individual who made his career as a forecaster of trends for the SU economy will often have insights on precious metals. Gerald Celente is one such individual who keeps close tabs on all industries. His recent predictions on gold are also worth taking note of. 

Who is Gerald Celente? 

In the finance industry, the name Gerald Celente will ring a bell for many people. He is an active American trend forecaster and business consultant. All of this stems forth from his early political experience running a mayoral campaign in Yonkers. He also traveled between major US cities as a government affairs specialist until 1979. 

As of 1980, Celente founded The Trends Research Institute. Eventually, this also became the home of the Trends Journal, which forecasts and analyzes the American economy and its corporations. The magazine also pays close attention to socioeconomic, political, and other trends that might impact the economy in the short or long term. 

Over the years, Gerald also published three different books. His first, titled “Trend Tracking: The System to Profit from Today’s Trends” proved very successful over the years. Book number two, called “Trends 2000: How to Prepare for and Profit from the Changes of the 21 Century” still holds a lot of value today. His third book covers an entirely different topic, yet it depicts an interesting story about the soul of America in the modern age.

Gerald Celente’s Forecasting

Being a trend forecaster is not as easy as it may seem at first. It requires vast knowledge of past, current, and future events. Anything and everything can make markets move in a specific direction. Preparing for what the future may hold is crucial as a forecaster, and Celente has been able to do exactly that. 

Unlike what some may expect, not all forecasts have been about finances directly. Celente has warned about terrorism, war, and economic collapses alike. He also predicted the rise of fascism in the United States, as well as food riots. He also firmly believes that  anti-Americanism sentiment will continue to grow over time.

Over the years, Celente also grew more outspoken about the influence of Wall Street. He even claimed how Wall Street controls people’s financial lives, and the media manipulates the minds. Gerald fears that the existing systems will bankrupt the country, a vision that may not be that unlikely to come true either. 

Gerald Celente on Gold

Similar to other market analysts, Gerald is very confident that gold – and by extension silver – will continue their bullish trend throughout 2020. 

Earlier this year, he indicated how gold will reach $2,000 per ounce pretty quickly. Moreover, he hinted at how that may only be the beginning of the bull run, as some analysts predict prices between $3,000 and $10,000

Given the current market sentiment, surpassing the high of $1,900 an ounce will pose its own set of challenges. Assuming this level van be reached and sustained, however, things may continue along the same line for some time to come. 

Gold Bug Profile: Ronald-Peter Stoeferle

Gold Bug Profile: Ronald-Peter Stoeferle

Looking at the growing list of gold bulls over the years, it is evident that precious metals will go places in one way or another. Ronald-Peter Stoeferle has always maintained high expectations of gold bullion, and a push to $8,900 is in the cards.

A Closer Look at Ronald-Peter Stoeferle

Not that many people start their financial career in their teens. Stoeferle is a very different creature in this regard, which is also part of what made him so successful. At the age of 14, he already bought a share, primarily because of his fascination for the financial markets.

Having the benefit of being able to invest during the dotcom boom has allowed Ronald-Peter to learn valuable lessons at a very early age. Ever since this first investment, he has remained passionate about all markets. While the focus may have shifted over the years, it allowed him to become a gold bug

Despite having initial job experience at the trading desk of a bank, Stoeferle quickly turned his attention to gold. This shift was facilitated by Erste Group, where he joined the Research department. In 2007, he published his first “In Gold We Trust” report, which is still very relevant today. 

The Year In Gold We Trust Report

Speaking of writing this report, it has become a yearly tradition for Ronald-Peter. Every single year, he keeps writing the report, although he has received the help of Mark Valek since 2013. 

Contrary to most reports pertaining to financial markets, In Gold We Trust is a holistic assessment of the gold sector. Moreover, it paints a picture as to which [external] factors will influence this market now, and in the months to come.

Everything in finance is connected to one another. Interest rates, debts, central bank actions, and gold are all trying to balance one another out. As has been apparent during the COVID-19 pandemic, the interest rates and central bank actions have forced more people to gold and silver. Demand for safe haven assets remains very high, and may continue to increase moving forward. 

Ronald-Peter Stoeferle on Gold

The most recent YouTube video using a gold price prediction by Ronald-Peter will undoubtedly get a lot of attention. In the video, it is mentioned how Ronald-Peter thinks a gold price of $8,900 per ounce is not impossible. It may – and probably will – take some time to reach this lofty goal, but it remains within the realm of possibilities. 

On the “In Gold We Trust” channel, there are a fair few videos involving Ronald-Peter Stoferle. These videos talk about various topics, including the gold market, how the US Dollar will evolve, and what central banks will need to do in the future. 

Providing video content pertaining to financial markets is a great way to reach a bigger audience. Not only will it convey a message better, but it can also be an excellent educational tool. 

Silver Bug Profile: Peter Leeds

Silver Bug Profile: Peter Leeds

Looking back in history, it is evident that many people pay close attention to gold and silver. This trend dates back to when these precious metals weren’t even near their current price levels. Financial analyst Peter Leeds can be labeled as a silver bug, primarily because of his interest in this metal. 

The Career of Peter Leeds

Over the years, Peter Leeds has become a renowned financial analyst and investor. He has always paid close attention to financial markets and specializes in mass market investor education.A lot of people remain in the dark as to how financial markets work, and jumping in blindly will ultimately lead to financial ruin.

For Leeds, his way of educating the masses comes in the form of being a public speaker, agreeing to media interviews, and organizing seminars for both novice and experienced investors. He is also involved in online publications, allowing him to get in touch with millions of enthusiasts around the globe.

Some people may know Leeds for running the Penny Stocks website. This has also contributed to earning him the title of “Penny Stock professional”, although the foundations for that title were laid much earlier in life. 

Following a completely failed investment at the age of 14, Leeds decided to study techniques and strategies of other traders. Technical analysis also became of great interest, as it can help gauge overall market sentiment. Ultimately, his system became known as Leeds Analysis, a method successful for finding low-priced stocks with treat profit potential. 

Peter Leeds on Gold

It is evident that paying attention to precious metal will often broaden one’s horizons. Leeds is no exception, as he isn’t just paying attention to penny stocks. One of his most recent investment videos touched upon gold, stocks, Bitcoin, and the impact of COVID-19. 

In the video, Leeds explains as to how he thinks that gold is poised to reach new heights. That is in line with other predictions made by various market experts. Some even claim that a price of $3,000 per ounce remains very likely. That outlook may be fairly optimistic, but anything is possible under the current global financial circumstances.

Peter Leeds Expects Silver to Soar

Similar to his opinion on gold, Leeds is very hopeful when it comes to silver. In fact, he considers it to be the top investment for 2020 and possibly beyond, especially given how all financial markets have evolved this year.

Making it his personal “top investment call for 2020” may be a bit optimistic in the eyes of some. Others , who are more experienced in the markets, will see some merit in the video evidence provided.Silver has been undervalued and underappreciated as an investment for a very long time. It is merely a matter of time until things change for the better.