What are Silver Mining Stocks and why do They Matter?

JP Buntinx
July 11, 2020

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.

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Trackbacks/Pingbacks

  1. Top 4 Industry-oriented Examples of Decentralized ChainLink Price Oracles • CryptoMode - […] the popularity of precious metals in 2020, there have been a fair few price fluctuations. Gold and silver are…

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Gold Bug Profile: Alan Greenspan

There are many pathways in life which can influence the future of one’s existence. For Alan Greenspan, one pathway of particular influence is called Objectivism.

Gold Bug Profile: James Rickards

Back in 2009, he claimed that the US Dollar would face imminent hyperinflation. Moreover, the greenback was, in his opinion, vulnerable to attack by foreign governments.

Gold Bug Profile: Peter Thiel

Since his tenure at PayPal, Peter Thiel has made a lot of headlines due to his investments. More specifically, he is an active VC for tech companies in their early stage of development.

Gold Bug Profile: Ben Davies

Ben Davies is the co-founder and CEO of Hinde Capital. Founding this company came after building up over a dozen years of experience in financial and commodity markets.

Gold Bug Profile: Eric Sprott

It is also worth noting that Eric Sprott sold his first company – known as Sprott Securities – back in 2011. Interestingly enough, the company was purchased by other staff members.

Gold Bug Profile: Peter Schiff

Despite paying very close attention to investment options such as gold and silver, Peter Schiff isn’t optimistic about Bitcoin and other cryptocurrencies.

Silver Bug Profile: Rick Rule

When it comes to the silver market, Rick Rule hasn’t shied away from expressing his sentiment at certain times

Gold Bug Profile: Jim Willie

Even today, Jim is still active in the financial world, primarily as a writer and analyst. He is happy to share his opinions on gold, silver, and a lot of other topics through various publications.

5 Reasons why Investing in Physical Gold is Always Worthwhile

Regardless of buying digital or physical gold, this precious metal is always worthwhile to investors. It is one of the few markets that offers key advantages one will rarely find in other assets.

Gold, Silver, and Crypto Markets Seem Poised for a Massive Bounce

For companies that are publicly traded – and often work over the weekend – having 24/7 exposure across the markets would be ideal.

Gold Bug Profile: Howard S. Katz

Even though Katz is rightfully called an early gold bug, it is evident that he was all too aware of how the markets evolved at any given moment.

These are the 5 Most Successful Silver Companies in The World

Investing in the precious metal industry can be achieved in many unique ways. Buying stocks of successful silver companies is becoming an increasingly popular option. Finding the right silver company to invest in can be somewhat tricky.

Silver Bug Profile: Peter Leeds

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,

Coronavirus-Infused Market Volatility is Bound to hit Australia and New Zealand

It now seems that Asian markets are recovering a bit. It is still too early to determine if the coronavirus crisis is under control in that part of the world.

Best Practices When Using Mobile Payments During the Novel Coronavirus Outbreak

Solutions such as Apple Pay, Google Pay, Samsung Pay, and WeChat Pay are all perfectly usable during these troubling times.

How do Silver Ions Kill Bacteria?

Silver has been used in wound care for decades. It is primarily used in wound dressings, as it helps clean out the wound and allow for it to recover bacteria-free.

Silver Price Likely to Keep Surging as Production Deficit Looms Overhead

It is expected there is a 13% decline in silver production from Latin America. This will, in turn, trigger a decrease in the yearly global silver supply by as much as 7.2%.

Why 2020 may be the Year of Silver Instead of Gold

Another contributing factor to the sudden popularity of silver is the gold-silver ratio. Despite this correlation hitting a high in favor of gold earlier this year, the current momentum looks very different.

The Silent Thief: How to Protect Savings from Inflation

How can you protect your savings from inflation? Horror stories of the prices of bread and milk spinning out of control have fixed the concept of inflation firmly in the public imagination. These hark back to the worst cases, like in the Weimar Republic where shoppers...

Where to Store Gold: Switzerland vs America

Savvy investors will already choose physical gold to avoid the counterparty risk of futures accounts, ETFs, and other forms of paper gold. But the jurisdiction of gold storage represents another, often overlooked counterparty risk.  When disaster strikes and the...

Translate Blog Post

Article Categories

Blog Stats

  • 118,168 hits

Follow the CEO on Twitter

%d bloggers like this: