Similar to gold, silver has been a store of value for eons. Utilizable for industrial applications. In addition, it can be a hedge against economic instability. Silver penny stocks may be a handy instrument for generating profits as silver prices rise.
Some may believe that silver penny stocks enable investors to watch the market price of silver, but in reality, investing in even the most satisfactory silver penny stock advice results in tracking the success of a particular production firm. Silver penny stocks are only as valuable as the firm backing them. Although the market price of silver directly impacts a firm’s financial performance, management abilities and plans determine whether a company is correct or incorrect.
Silver is rarely found in nature as nuggets but rather alloyed with gold, sulfur, arsenic, galena, and other metals. Australia and North and Central America are among the most silver-rich locations globally. Ensure that the mines of the most excellent penny stock selections for silver mining operations are located in these places while evaluating them.
An Overview of Silver
As an investment, silver offers many of the same potential benefits as gold and other precious metals. Some investors consider silver as a source of diversification due to its low connection with equities, as a hedge against inflation, or as a haven during economic downturns.
Silver is a valuable metal and a commodity with several industrial applications, including thermal and electric conductor manufacture, solar power extraction, chemicals, medical equipment, coinage, and jewelry.
Real silver is not a store of wealth but physical planning (a commodity) having financial value. Investors interested in gaining exposure to the silver price have several options to explore. Other than investing in stocks of firms that mine silver. Investors may own actual silver, invest in mutual funds containing silver mining stocks, invest in exchange-traded funds (or ETFs) that own physical silver or silver futures contracts, or acquire silver futures contracts.
10 Best Silver Penny Stocks You Should Consider in Your Profolio
1. First Majestic Silver
First, Majestic derives around half of its earnings from silver and the other half from gold, making it one of the cleanest silver plays in the mining industry.
Although First Majestic is a Canadian corporation, it concentrates on Mexico since it produces more silver than any other country. Presently, the firm runs three silver mines in Mexico and is developing many more.
In Nevada, First Majestic also runs the Jerritt Canyon Gold Mine. In 2021, it acquired the mine to diversify its activities. Despite adding a principal gold mine, First Majestic has greater exposure to silver than its competitors.
First, Majestic outperformed the precious metal’s price, focusing on silver production positions. It may boost output while decreasing expenses, which should grow profits faster than the price of silver. This business strategy also leaves the company susceptible to operational issues and expense overruns. Mining concerns, management blunders, and exposure to other commodities can harm the stock performance of the silver mining business.
First, Majestic feels it can be an outperformer over the long run. It intends to become the largest primary silver producer globally, and it invests millions of dollars annually toward this objective of discovering and developing new silver mines.
2. Endeavor Silver Corporation
Endeavor Silver Corp (NYSE: $EXK) reduced its mining expenses by about 20 percent in 2016, reduced its debt by more than $4 million, and nearly doubled its profitability in 2015. Every year, Endeavor is renowned for increasing its silver production, and it has a three-year rise in revenue.
With all of this in mind, the Canadian-based company is also seeking to expand its three operating mines in Mexico and a few other mines being constructed. Despite this, the company’s stock price continues to trade at about $5 per share. Endeavor Silver Corp. conducted a $16.4 million stock offering in the business sector to obtain additional money towards the end of 2015.
Similar to other silver companies, Endeavor needs a significant rise and recovery in the price of silver for its stock price to recover. EXK is a small-cap mining company with a market value of $482 million. Its current production level and promising-looking reports from future projects make it an excellent investment prospect.
3. Wheaton Precious Metals
Wheaton Precious Metals is a streaming company for precious metals. Wheaton offers mining firms cash to pay a portion of their mine development expenditures instead of running physical mines. The firm obtains the right to purchase a part of the mines’ output at predetermined pricing.
Wheaton expects its silver streams to account for around 40% of its production mix between 2022 and 2026. The corporation has the most significant exposure to silver among its streaming and royalty competitors.
Through 2025, Wheaton has the contractual right to acquire the precious metal at an average price of $5.81 per ounce. Any silver price over that threshold provides a profit for the corporation.
Because of its focus on streaming, the organization has generated a significant income. Wheaton invests these funds in new revenue sources and pays dividends to its stockholders. Wheaton’s business strategy allows it to benefit similar to a mining firm from higher silver prices. However, it is subject to fewer hazards and possible cost overruns than physical mining.
4. Klondike Silver Corp
Klondike is a Canadian company that is still in the discovery phase. It concentrates on a single mining project that has yielded hundreds of millions of kg of silver, zinc, and lead. Some of these mines are historically significant.
Silvana ranks first among the 15 former producing mines under the Klondike Silver Claims. And the mine Klondike is eyeing is Silvana.
The management and directors of Klondike depart. They have skill and success in management, accounting, and other pertinent fields such as investing in precious metals. In March of 2021, Klondike hired a new executive director. And the previous director successfully resigned in June of 2021.
This silver mining firm has a modest market capitalization, and it is close to 19 million Canadian dollars. Thus, it has ample room for expansion. Additionally, it would be prudent to remember the following point.
Some of the most significant and largest natural resource firms are headquartered in Canada or are listed on the Canadian stock exchange. You were considering Adding Klondike as one of your silver penny stocks might likely yield attractive profits.
With silver demand expected to surpass one billion ounces this year, this silver penny stock is set to appreciate.
5. Comstock Mining (LODE)
Comstock Mining Inc. (NYSE: LODE) was created in 1999 in Virginia City, Nevada, its headquarters. Comstock Mining now controls around 68% of the mining claims in the coveted Comstock Lode region. In addition to silver and gold mining, the company also includes a hospitality segment at the gorgeous Gold Hill hotel and bar.
Comstock Mining has concentrated most of its efforts in the Lucerne Resource Area, where it has recently completed both open-pit and underground silver mining. In addition, the organization’s manufacturing expenses have decreased significantly during the past few years.
The organization’s stock is now trading for around 37 cents per share and has a market valuation of $66 million. The stock’s current price-to-earnings ratio is slightly expensive, but its long-term prospects appear promising due to declining expenses and rising silver prices.
In Canada, Alexco Resource Corporation engages in mining operations and mineral exploration and development. It investigates gold, silver, lead, and zinc ores. In 2011, while silver prices were high, Alexco placed their mine into production. The company ceased operations in 2013 due to the recession in the business sector.
In 2015, the stock was exchanged from $0.30 to $0.50/share over a significant amount of the previous year, indicating an unprecedented investment. With production stalled and the company anticipating higher silver prices to reopen the mine, Alexco was a model “optionality” bet that promised spectacular leveraged profits.
Additionally, the optionality play began functioning in 2016. With the increase in silver prices, its share price also increased to $2.5. Given the possible rise in silver prices, there is more upside potential for the company’s stock price.
6. Silver Predator Corp
Silver Predator Corp. is a minor mining business with many holdings. It is headquartered in Canada, and it owns property in the Silver Valley District in northern Idaho. This region is renowned across the industry for its superior quality.
Silver Predator is a silver penny stock that is also investigating copper. It possesses mining properties in Nevada as well.
Its management is comprised of experts in their respective professions. The chief executive officer has over 25 years of expertise in exploration and management jobs.
Likewise, the Silver Predator directors have achieved great success. Dr. Terry Rickard has more than 40 years of experience in investment, and he is also the author of several best-selling financial books on the New York Times bestseller list.
Silver Predator named Brian Lupien to the Board of Directors in March of 2021. In addition, the company has just obtained financing to commence exploration of its Copper King property.
7. Silver Buckle Mines, Inc.
Silver Buckle is a small-cap silver stock. Although it has seen brief periods of growth, it has never escaped its status as a penny stock.
This small silver penny stock possesses almost little public information. Therefore, it may be prudent to maintain a small stake size if you choose to invest.
If not, you may always keep it in mind and monitor it. If it begins to climb, you may invest a little amount. However, if the price falls, you will be pleased you did not support it.
This is a stock for which due diligence is essential. If you know more about Silver Buckle than anybody else, you might be in a position to make a profit. You’ll need to conduct extensive research before making this selection.
Ensure that its financial future is bright. Verify if the management team is capable of driving the company’s expansion.
Leadership changes are occasionally advantageous, significantly if your company’s stock has been declining as this one has.
Once you’ve unearthed a nugget of information, it may be an excellent cause to buy, particularly if other investors and major media outlets have not yet caught on. Finding a “silver information nugget” and conducting more investigation can result in excellent investment returns.
8. MAG Silver Corp
MAG Silver Corp (MAG) discovers and develops silver mining resources and gold, lead, and zinc deposits. Additionally, MAG owns a 44 percent stake in the Juanicipio project in the Fresnillo District of Zacatecas State, Mexico. Incorporated in 2003 and located in Vancouver, Canada, MAG Silver was founded in 2003.
Even though Seeking Alpha gives MAG an A+ for Momentum Grade, investors should know that MAG obtains an F for Valuation.
9. Silver Bear Resources Corporation
Silver Bear Resources is the owner and operator of a Russian asset. It is the company’s most significant undertaking and the primary focus of its efforts. The support is referred to as the Mangazeisky Silver Project. It also has one of the world’s richest silver deposits.
Silver Bear is a juvenile. One of the project’s mines would produce its first silver in 2018. In 2019, the company achieved complete commercial manufacturing, and silver bears extracted around 115,000 tons of ore in 2020.
Additionally, it has excellent leadership. The chief executive officer and other members of management have expertise and success in both the technical elements of silver mining and the corporate and financial realms. The Board of Directors shares the same understanding.
In addition, they emphasize working with and supporting local communities. They seek to ensure worker safety, maintain a clean atmosphere, and improve openness, which discourages corruption inside the organization.
The share price has declined dramatically from its 2011 peak, and it has been in a prolonged bear run and has been flat. This silver penny stock may soon resume its ascent.
10. Great Panther Mining Limited
Excellent Panther Mining is one of the famous silver penny stocks to watch. Even though it was not a milestone day like Almaden, there was an unusual movement in the stock. GPL stock has withstood a significant portion of the storm that battered some mining equities in late 2020. However, GPL did see a decline early in the year. The miner’s price began the year trading around $0.89 and fell to lows of $0.75. Intriguingly, GPL has rebounded many times from this 75-cent region during the past few months. In July, October, and November, shares sank to this position on the chart and subsequently rebounded like clockwork.
The most recent sessions have followed this pattern. Additionally, Great Panther has a vital occasion to consider. The previous week, the firm submitted its “Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapa State, Brazil” the previous week. The Report confirms Great Panther’s December announcement of improved Mineral Reserve and Mineral Resource estimates for Tucano.
Should You Add Silver Penny Stocks in Your Profolio?
Silver’s price may be unpredictable. The cost of silver increased by more than 45 percent in 2020, surrendered a portion of those gains in 2021, declining by around 10 percent, and then launched a double-digit recovery in early 2022. As economic, inflationary, and geopolitical anxieties increased and faded, so did silver prices. These catalysts influenced the prices of precious metals and cryptocurrencies.
However, silver’s investing characteristics as a hedge against inflation are only part of the tale. Silver is an essential industrial metal, and it is vital for renewable energy in particular. The rapidly expanding solar energy and electric vehicle (EV) sectors are significant demand generators in the industrial sector.
Because of this, silver’s demand should increase in the following years, which might continue to drive up its price. Thus, silver is a possible play on the expansion of sustainable energy.
Most investors choose silver stocks of the actual metal, such as coins or bars. When the demand for silver increases, silver enterprises may frequently seek expansion options to increase their earnings faster than the price of silver rises. This should enable them to perform better than the precious metal. Moreover, investors may avoid the inconveniences and hazards of obtaining, storing, and insuring a physical asset by not possessing the gold itself.
Silver’s contribution to the economy is growing as a unique precious metal with industrial, consumer, and investment demand. Consequently, silver mining equities and silver-focused ETFs might be good additions to a variety of investment portfolios.
Investing in the equities of silver mining firms is one of the numerous ways investors may indirectly obtain exposure to the silver price. While silver investments can assist in diversifying a portfolio, investors should be aware that the cost of silver and silver miner companies is subject to substantial short-term volatility.