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Best Silver Stocks to Buy in 2021

Author: Mir Kamrul

If you plan to invest in less risky assets, consider adding silver stocks to your portfolio. Silver is not only a precious metal but also an indispensable resource for a wide range of industries. With a reputation for its value that spans the centuries, silver is one of the seven metals of antiquity from which the modern world was forged. 

Those who term silver as ‘the poor man’s gold’ are probably unaware of how useful it is - but this fact is certainly reflected in its value. In the following article, you’ll find a list of what we consider to be the top ten silver stocks worth investors’ attention, including a complete guide on trading your first assets.

Where Can I Trade Silver Stocks?

Finding a trading platform with low fees and quality trading standards can be challenging, but not if you are given a pointer in the right direction. A good broker will always prioritise transparency and maintain a high standard of service, focusing on making trades as simple as possible. That is why we have shortlisted a few platforms where you can find silver stocks while benefiting from a user-friendly interface and a plethora of trading tools.

1
Pan American Silver Corp (PAAS)
Our score
10
Owns and operates mines across South America
Prominent player in the mining industry
$1.8B revenue in 2020
Description:
Payment Methods
Full regulations list:
2
First Majestic Silver (AG)
Our score
9.3
Founded in 1979
$4.37B market cap
Prominent player in the silver mining industry
Description:
Payment Methods
Full regulations list:
3
Commercial Metals (CMC)
Our score
8.7
Founded in 1915
1.93% dividend yield
$2.99B market cap
Description:
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4
Wheaton Precious Metals (WPM)
Our score
8.5
Precious metals streaming company
Lower-risk opportunity to invest in the mining industry
Company with a positive cash flow
Description:
Payment Methods
Full regulations list:
5
Fresnillo (FRES)
Our score
7.9
World's largest silver miner
Owns and operates mines in Mexico
FTSE 100 company
Description:
Payment Methods
Full regulations list:

What Are Silver Stocks?

Silver stocks are among the very few assets considered to be safe during economic uncertainty. In this way, silver is similar to the most commonly known and trusted investment, gold. Due to its ability to retain value, silver has attracted many seasoned investors even when markets take a downturn.

Silver is a valuable commodity across many industries, which has an increasing influence on stock prices. As such, investors also focus on the top silver-mining companies. Even during the coronavirus pandemic, there was no significant decline in the value of these stocks. 

How to Trade and Invest in Silver Stocks?

1

Open a Trading Account

Before you begin to invest in silver stocks, you need to open a trading account by registering on your selected brokerage platform. This is a relatively simple process as it takes only a few minutes to select a username, a password and provide a contact email or telephone number. After this, you will need to upload an identification document to verify your account, such as a valid passport or driving license.

2

Choose Silver Stocks

Once your trading account is activated, you can add funds using a debit or credit card. These deposits rarely have fees attached, but it is always worth checking when you select which broker you plan to use. Navigate to the stocks trading page and select silver as your asset of choice.

3

Place Your Trade

If you are a beginner trader, it is worth making use of the demo account before committing to any actual trades. This allows you to get accustomed to the platform, get comfortable with the trading mechanisms, and the unique services and features available. Once you feel confident, you are free to get started by purchasing your silver stocks and other chosen assets.

Best Silver Stocks to Buy in 2021

The following list contains what we believe to be the top ten silver stocks to trade based on market size, historical performance, and investment potential.

  1. Wheaton Precious Metals (NYSE: WPM)
  2. First Majestic Silver (NYSE: AG)
  3. Silvercorp Metals Inc (NYSE: SVM)
  4. Hecla Mining (NYSE: HL)
  5. Kuya Silver (CSE: KUYA) (OTC: KUYAF)
  6. Endeavour Silver Corp (NYSE: EXK)
  7. Great Panther Mining LTD (NYSE: GPL)
  8. Coeur Mining Inc (NYSE: CDE)
  9. McEwen Mining Inc (NYSE: MUX)
  10. Pan American Silver Corp (NASDAQ: PAAS)

1. Wheaton Precious Metals (NYSE: WPM)

Wheaton Precious Metals works with several other companies to become established in the gold and silver mining industry. The company expects that 40% of its production volume will come from its silver-related activities from 2021 to 2024.

The company's silver streaming contracts give it the right to purchase silver at $5.31 per ounce over the next decade.

2. First Majestic Silver (NYSE: AG)

First Majestic Silver is one of the most prestigious silver mining companies. After acquiring the Primero Mining Corporation back in May 2018, First Majestic has full ownership of the San Dimas gold/silver mine - all 71,867 hectares of it!

Silver accounts for approximately 70% of First Majestic’s total revenue at the time of writing. 

3. Silvercorp Metals Inc (NYSE: SVM)

Silvercorp Metals Inc is headquartered in Canada and activates in the mining industry. It produces silver, zinc, and lead via its China-based facilities. The company is known as the largest silver producer in China and trades on both the New York Stock Exchange in the US and the Toronto Stock Exchange in Canada. 

SVM’s financial results were highly favourable in FY2021 due to increases in prices and sales of silver, zinc, and gold, reaching a revenue growth of 21% and a 35.3% increase in net income. 

4. Hecla Mining (NYSE: HL)

Hecla Mining is one of the oldest precious metal-mining companies listed on the New York Stock Exchange. It has the ownership of over one-third of all silver mined in the US and also controls over one-third of the country's total silver resources.

Hecla Mining is responsible for a huge percentage of the US silver supply and may become stronger in the post-pandemic period.

5. Kuya Silver (CSE: KUYA) (OTC: KUYAF)

Kuya Silver Resources is a newly listed silver mining company that explores and develops the Bethania mine located in Lima, Peru. The company has stepped up its mine development program and plans to become a significant player in the industry over the next several years. 

Another exciting feature of the Bethania silver mine is that it is located right in the middle of Peru's silver, lead and belt.

Expert Tip on Investing Silver Stocks

Before investing in silver stocks, it is always advisable to research your chosen companies. Joining a trading platform that offers detailed educational and research materials will help you save time. Another fantastic way to inform your trading decisions is to stay up-to-date with any relevant news that will undoubtedly impact the financial markets. Announcements about lockdown restrictions, regulatory changes, or upswings and downturns of fiat currencies have the potential to influence your investment. As silver is a core component of many electronics, even technological developments may be worth monitoring.
- Mir Kamrul

Why Invest in Silver Stocks?

Silver has been used for centuries not only for its beauty but also as a medium of exchange in the form of coins and bullion. The use cases for this valuable metal have also increased dramatically due to technological developments. As the best thermal and electrical conductor, the growing market of silver even has the potential to surpass gold in the future. 

Unlike other popular metals, most of the silver demand comes from the industrial sector. Not only has silver been used alongside gold for jewellery and bullion coins for many ages, but it is also used in solar panels, water filtration, and has the highest thermal and electrical conductivity of any metal.

Although one can choose to actually purchase physical silver in the form of ingots, items or bullion, trading silver stocks can allow investors to benefit from gains associated with silver without spending on storage and security, among others. 

Frequently Asked Questions

  1. This depends on the trader's needs and expectations. The best practice is to research the companies you want to add to your portfolio and decide which one appeals to you the most.

  2. Whether or not silver stocks are a good option for you depends on what you want to gain from your investment. Silver has always been perceived as a good investment because many consider silver stocks a safe asset. Silver stocks are more stable and resilient to economic turmoil but not as rewarding as other volatile trading instruments.

  3. Both institutional and retail investors may consider adding silver stocks to their portfolio for diversification purposes.

  4. Silver stocks have more stability than other trading instruments and also have great future prospects because the precious metal has a finite supply. As such, it can be argued that silver stocks are a good way for beginners to take their first steps into the trading world. However, success depends on the ongoing prosperity of the companies you choose, and there are never any guarantees in financial trading.

  5. Silver has always had a significant presence in the trading world. The precious metal actually led the market back in 2019, accounting for around 85% of the global volume. With an ever-increasing demand from the industrial sector, silver will continue to be a major player in the foreseeable future.

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