Updated on January 21, 2023
Silver is a popular choice for investors looking to diversify their portfolios but novice investors often wonder: what is good silver stock to buy? Before we explore what is the best silver stock, let’s define the commodity. Silver is a precious metal with a long history of being used as a form of currency, and it has a number of perks over other investment options. It is less expensive compared to gold, making it a good option for those on a budget. It is also less volatile than other precious metals, making it a good choice for those who want to minimize risk.
There are various ways to invest in silver. You can buy silver stocks, which are shares of companies that mine and produce silver. You can also buy silver bullion, which is silver in the form of coins or bars. Finally, you can buy silver ETFs, which are investment funds that track the price of silver.
Reasons to invest in silver stocks.
There are many reasons to invest in silver stocks, but here are a few of the most compelling:
First, silver is a precious metal with a long history of being used as currency. Many investors view silver as a safe haven asset in today’s uncertain economic climate.
Second, silver is used in a vast range of industrial applications, from electronics to medicine. This means that silver stocks are less likely to be affected by economic downturns than other types of investments.
Third, silver is currently undervalued compared to other precious metals like gold. This makes it an attractive investment for those looking to get their money’s worth.
How to invest in silver stocks
Here’s a step-by-step guide on how to buy the best silver stocks.
Research the different types.
There are many different types of silver stocks, and it is important to do your research before investing. Some common types of silver stocks include mining companies, streaming companies, and ETFs. Mining companies are involved in the actual process of mining silver while streaming companies provide financing to miners in exchange for the right to purchase silver at a discounted price. ETFs are investment funds that hold a basket of assets, including silver stocks. It’s important to conduct thorough research in order to make an informed decision.
Decide which type of silver stock you want to invest in.
There are two main types of silver stocks: miners and streaming companies. Miners are companies that explore for, mine, and process silver. Streaming companies provide financing to miners in exchange for the right to purchase silver at a discounted price in the future.
Both types of companies offer investors exposure to silver, but they differ in terms of risk and potential return. Miners are riskier because their success depends on factors beyond their control, such as the price of silver and the availability of resources. However, they also offer the potential for higher returns if silver prices increase.
Streaming companies are less risky because they have contracts in place to purchase silver at a set price.
Find a reputable broker.
Before investing in silver stocks, finding a reputable broker who can help you navigate the market is important. Look for a broker with experience in silver stocks and a good track record. Once you’ve found a broker you trust, they can help you purchase silver stocks and answer any questions you may have about the market.
Buy through a mutual fund or exchange-traded fund.
One way to invest in silver stocks is through a mutual fund or exchange-traded fund. This can be a good option for investors who want to avoid directly buying and selling stocks. Mutual funds and ETFs offer diversification and professional management, which can make them less risky than investing in individual stocks.
Here are the best silver stocks in 2022:
Pan American Silver (PAAS)
Pan American Silver (PAAS) is one of the finest silver stocks to buy in 2022. It is a Canadian company with a market capitalization of $2.9 billion. PAAS is the world’s second-largest primary silver producer, with operations in Mexico, Peru, and Bolivia. The company has a firm track record of growth, with its share price increasing five-fold over the past decade. PAAS is a good choice for investors seeking exposure to the silver market.
There are a number of compelling reasons that make this company a fantastic investment. First, the company has a strong history of financial performance, with impressive revenue and earnings growth in recent years. Second, Pan American Silver has a large and growing reserve base, which provides significant upside potential for investors. Finally, the company is well-positioned to benefit from the expected growth in global silver demand over the next few years.
First Majestic Silver (AG)
First Majestic Silver (AG) is a great silver stock to invest in. The company has a strong focus on silver production, with seven operating mines in Mexico and Canada. First Majestic is also one of the lowest-cost silver producers, with an all-in-sustaining cost of just $9 per ounce. That makes it a great choice for investors looking for exposure to the precious metal.
Other reasons to pick this stock include the following: First, the company has a strong history of producing quality silver products. Second, its share price is currently undervalued, making it a great long-term investment. Finally, First Majestic is committed to environmental, social, and governance (ESG) initiatives, which makes it an ideal investment for young professionals who want to make a difference.
Wheaton Precious Metals (WPM)
Wheaton Precious Metals is a great silver stock to hold in the market. The company’s primary focus is on silver production, and has a strong portfolio of high-quality assets. Wheaton Precious Metals has a long history of consistent growth and is well-positioned to continue this trend in the years ahead. The company is an attractive option for young professionals who are looking for a solid investment in the precious metals sector.
There are many reasons to invest in Wheaton Precious Metals (WPM) stock in 2022. First, the company is a leading producer of silver, with operations in Canada, Mexico, and Chile. Second, WPM has a strong track record of financial performance, with revenue and earnings growing at a compound annual rate of 16% and 20%, respectively, over the past five years. Third, the company has a diversified portfolio of assets and a disciplined approach to capital allocation. Fourth, WPM has a highly qualified management team with a proven track record of delivering shareholder value. Finally, the company’s shares are attractively valued at just over 10x forward earnings.
Silver Standard Resources (SSRI)
Silver Standard Resources (SSRI) is a notable silver stock to buy in 2022. The company has a firm track record of growth and is well-positioned to continue this trend in the coming year. The company’s silver production is primarily from its Pirquitas mine in Argentina, one of the world’s largest and highest-grade silver mines. SSRI also has several other silver projects in development, which should provide additional growth potential in the future.
There are a number of reasons to invest in SSRI. Firstly, the company has a strong financial position with a cash balance of over $100 million and no debt. This gives them the flexibility to take advantage of opportunities as they arise. Secondly, they have a diversified portfolio of silver mines, reducing their risk. Lastly, they have experienced management with a proven track record in growing silver production.
Endeavour Silver (EXK)
Endeavour Silver (EXK) is also a strong silver stock for an investor to buy. The company has a firm track record of growth, and its shares are well-positioned to continue outperforming in the coming year. Endeavour is a low-cost producer with a diversified portfolio of high-quality assets. The company also has a firm commitment to sustainable practices and responsibility. For these reasons, we believe Endeavour is an ideal pick for young professionals looking to invest in silver stocks.
Other reasons to invest in Endeavour Silver (EXK) are: First, EXK has a strong production profile, with silver output expected to increase robustly in the next few years. Second, the company has a large and high-quality silver reserve base. Third, EXK is well-positioned to benefit from rising silver prices due to its low cost of production. Finally, the company has an exceptional track record of delivering shareholder value through dividend payments and share repurchases.
Silvercorp Metals (NYSE: SVM)
Silvercorp Metals (NYSE: SVM) is one of the finest silver stocks to buy in 2022. The company is a leading primary silver producer, with operations in China and Canada. Silvercorp has a strong track record of growth, with revenue and earnings gaining at a compound annual growth rate of 30% and 20%, respectively, over the last five years. The company is well-positioned to continue this growth with a large portfolio of high-quality silver projects.
There are other compelling reasons to invest in Silvercorp Metals; First, the company has a robust track record of producing and selling silver. Second, Silvercorp has a diversified portfolio of silver mines, which reduces the risk of anyone mine being shut down. Third, the company is headquartered in Canada, which has a stable political and economic environment. Finally, Silvercorp has a strong management team with experience in the silver mining industry.
Fortuna Silver Mines Inc (NYSE: FSM)
Fortuna Silver Mines Inc is a Canadian based precious metals mining company with operations in Mexico. The company’s primary focus is silver production from its two operating mines, the San Jose Mine in Mexico and the Caylloma Mine in Peru. Fortuna Silver also has a number of advanced-stage development projects, including the Lindero gold project in Argentina and the Marañon zinc project in Peru. Given the company’s strong growth prospects, FSM is one of the finest silver stocks to buy in 2022.
Fortuna Silver Mines Inc (NYSE: FSM) is the best silver stock to buy in 2022 for a number of reasons. First, the company has a strong balance sheet with plenty of cash on hand to weather any storms that might come it’s way. Second, Fortuna has a proven track record of operating mines efficiently and profitably. Finally, the company is well-positioned to take advantage of rising silver prices, thanks to its low cost of production and large reserves.
First Majestic Silver Corp (AG)
First Majestic Silver Corp (AG) is one of the finest silver stocks to buy in 2022. The company is a leading primary silver producer with operating mines in Mexico and Canada. First Majestic has a strong track record of growth and is committed to sustainable development. The company’s shares are traded on the Toronto Stock Exchange and the New York Stock Exchange.
With a market cap of $2.4 billion, First Majestic Silver Corp is one of the largest primary silver producers in the world. The company has a strong portfolio of high-quality assets, including eight operating mines in Mexico and Canada.
First Majestic is well-positioned to benefit from an expected recovery in the silver market in 2022. The company has a strong balance sheet with no debt and plenty of cash on hand. It also has a proven track record of delivering shareholder value through disciplined capital management.
Aya Gold & Silver Inc (AYA)
Aya Gold & Silver Inc is a Canadian precious metals producer with its flagship high-grade silver mine in Mexico. The company has a market capitalization of CAD$1.4 billion and is listed on the Toronto Stock Exchange (TSX: AYA). Aya is one of the few primary silver producers with a strong growth profile, low-cost structure, and large undeveloped land package.
In addition, the company has a strong financial position and is well-positioned to weather any market volatility. Furthermore, AYA has a history of paying dividends and is committed to shareholder returns. Lastly, the company’s mines are located in politically stable jurisdictions, which reduces risk.
In conclusion, if you are interested in knowing what’s the best silver stock to buy, these are some of the best options. However, it is always important to do your own research before investing in any stock, and silver stocks are no different. Be sure to take the time to understand the risks involved before making any investment decisions.
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