Silver is highly valued as both an industrial and precious metal. It is used to manufacture jewelry, electronics, and photographic film. Numerous investors utilize it as a haven during economic downturns and occasionally as a hedge against inflation. Silver mining businesses acquire, explore, develop, and produce mineral deposits. These firms frequently mine for various metals and minerals in addition to silver, including zinc, lead, copper, and gold. Silver is frequently a byproduct of the mining of various other metals. Following Russia's invasion of Ukraine in February, exchange-traded funds (ETFs) focused on silver, and other precious metals have soared. However, the impact on silver mining companies may be different.
As measured by the Global X Silver Miners ETF (SIL), Silver stocks have lagged the broader market by a significant margin over the last year. Over the last 12 months, SIL has generated a total return of -6.7 percent, significantly less than the benchmark Russell 1000's total return of 8.3 percent. These market performance figures and all other statistics in the tables below are accurate as of March 10, 2022.
While some believe that investing in silver penny stocks enables investors to watch the market price of silver, the reality is that even the best silver penny stock recommendations result in investors tracking the success of a specific production firm. Silver penny stocks are just as good as the corporation that backs them up! While the market price of silver directly impacts its financial performance, it is the management abilities and tactics that determine whether a firm is correct or incorrect.
14 Best Silver Penny Stocks to Buy
1. Silver Bear Resources Plc
Silver Bear Resources is a Russian company that owns and operates an asset, and it is the company's largest endeavor and primary emphasis. Mangazeisky Silver Project is an asset, and Additionally, it includes one of the world's highest-grade silver deposits.
Silver Bear is a juvenile. It announced the start of silver production in 2018 at one of the project's mines. And it achieved full commercial production in 2019, and silver Bear mined around 115,000 tons of ore in 2020.
Additionally, it has outstanding leadership. The whole management has extensive expertise and success in both the technical areas of silver mining and the corporate and financial worlds. The Board of Directors shares this perspective.
Additionally, they place a premium on collaborating with and supporting local communities. They aim to ensure worker safety, clean the environment, and improve openness, which deters internal corruption.
Since its 2011 high, the stock has fallen considerably, and it has been in a bear run for an extended period and has been flat. This silver penny stock may soon resume its ascent.
2. Klondike Silver Corp
Klondike is headquartered in Canada and is currently in the exploring phase. It is concentrated on a single mining project that has resulted in hundreds of millions of kilograms of silver, zinc, and lead. Several of these mines are historically significant.
Silvana is the most productive of the 15 former producing mines within the Klondike Silver Claims. And Silvana is the aim of Klondike.
Klondike's management and directors do a background check, and they excel in management, accounting, and other pertinent fields such as precious metals investing. Klondike appointed a new director in March 2021. And in June 2021, the previous director resigned successfully.
The market capitalization of this silver mining firm is quite small, and it's close to 19 million Canadian dollars. As a result, it has plenty of room to grow. Additionally, it would be prudent to bear the following point in mind.
Several of the world's most successful and largest natural resource firms are headquartered in Canada or trade on the Canadian exchange. You are investing in Klondike as one of your silver penny stocks will almost certainly result in great future gains.
With silver demand expected to exceed one billion ounces this year, this silver penny stock is set to soar in value.
3. Silver Predator Corp
Silver Predator Corp is a small mining business with a diverse portfolio of properties. It is headquartered in Canada and owns property in Northern Idaho's Silver Valley District. This area is renowned throughout the industry for its superior quality.
Silver Predator is a penny stock focused on silver, although it also explores copper. Additionally, it holds mining properties in Nevada.
It is managed by specialists with extensive experience in their respective industries. The CEO has over 25 years of expertise in exploratory and leadership positions.
The directors of Silver Predator are likewise successful. Dr. Terry Rickard has 44 years of financial business expertise. And James Rickards is a best-selling author of numerous financial books who has appeared on the New York Times bestseller list.
Silver Predator added Brian Lupien to its Board of Directors in March 2021. Additionally, it has secured a loan to fund the exploratory phase of its Copper King project.
4. Silver Buckle Mines, Inc.
Silver Buckle is a little amount of silver in a penny stock. Although it has experienced some higher days, it has never transcended the status of a penny stock.
This micro silver penny stock has scant information accessible. Therefore, if you wish to invest, bear in mind that there is considerable danger and that it may be prudent to maintain a smallholding.
Otherwise, you may always keep an eye on it. If it begins to rise, you might consider investing a little money. However, if it falls, you'll be pleased you didn't invest.
This is one of those stocks that need scrutiny. If you have knowledge about Silver Buckle that few others do, it could be beneficial. You'll want to conduct extensive due diligence on this selection.
Ascertain that its financial future appears to be positive. Examine the management team and ensure that they can grow the business.
Occasionally, a change in leadership is a wise choice, particularly if your company's stock has been declining, as this one has.
Once you've unearthed your little nugget of knowledge, this may be a compelling incentive to purchase, particularly if other investors and major news organizations have not yet caught on.
Finding a "silver nugget of information" and conducting the additional investigation can result in excellent stock returns.
5. First Majestic Silver Corp. (AG)
These NYSE silver penny stocks come from a firm that owns and operates five significant silver mining properties in Mexico. The company is based in Canada and has a silver trading operation in Europe.
6. Tahoe Resources Inc. (NYSE: TAHO)
This corporation conducts mines exploration, development, and operation throughout the Americas. Its primary activities of copper, gold, silver, lead/zinc, natural gas, and petroleum, and the acquisition of precious metals assets.
Tahoe produced a record 21.3 million ounces of silver in 2016 at an all-in sustaining cost of $8.06 per ounce.
This means that TAHO is exposed to a variety of precious metals and natural resources in addition to silver. Investors can purchase this silver stock to hedge against daily variations in the price of silver.
Another advantage of investing in a business that operates in this manner is asset diversification. If this firm determines that one operation is more profitable than another, it may elect to sell assets from one to fund the other, enhancing the stock price.
TAHO pays an excellent yearly dividend of $0.24 per share. Numerous analysts have provided comments on whether to buy, sell, or hold the stock, offering continual recommendations to supplement your own study.
The company offers investors a low-cost, liquid way to obtain exposure to the silver market and other precious metals.
7. Pan American Silver Corp (NASD: PAAS)
This is a silver exploration and development firm involved in the acquisition, development, and operation of silver properties. The majority of its silver mining operations are located in Central and South America, and the company also owns non-producing silver resources in the United States.
Pan American is the world's second-largest producer of primary silver, and it is one of the largest publicly-traded companies in the space by market capitalization. This is not an indication of the stock's price but its size.
The company produced 25.4 million ounces of silver and 183,900 ounces of gold in 2016.
PAAS pays a $0.10 yearly dividend per share. Dividends are not guaranteed and may fluctuate. However, given the enormous number of financial institutions that own PAAS, investors should be confident that a dividend cut or unexpected management shake-up is improbable.
If investors purchase this silver stock, they can rest certain who will make any management decisions quickly and without significant slippage.
Simple—this stock trades well over one million shares each day, providing sufficient liquidity for free trading. This is critical while making investing decisions. PAAS has a number of analysts providing commentary on the company's operations and stock price, which can guide investors in considering purchasing this silver stock.
8. Fortuna Silver Mines (NYSE: FSM)
Fortuna Silver Mines is a Vancouver-based silver mining firm. Currently, the corporation operates four mines in South America and West Africa, and its mines in Peru, Mexico, and Burkina Faso have been producing precious metals for numerous years.
The company expects to open its latest project, a gold mine in Argentina, in the fall of 2020. Additionally, Fortuna Silver Mines is developing a project in Cote D'Ivoire.
While silver is Fortuna's primary emphasis, the company also produces gold, lead, and zinc. Silver companies must have alternate revenue streams in case of an emergency.
While it is improbable that the price of silver will collapse overnight, the company's other mining operations provide an extra cash stream if it does.
The stock price of Fortuna fell significantly throughout the summer but has been gradually recovering, and numerous analysts believe this stock is now undervalued.
9. Silvercorp Metals Inc. (NYSE: SVM)
Silvercorp Metals is a Canadian silver, lead, and zinc mining business. While the company's headquarters are in Vancouver, most of its operations are currently based in China. Four of the company's mines are located in the Ying mining district and one in Henan Province, and one in Gaocheng.
Silvercorp Metals benefits from the Chinese economy's growth because it is based exclusively in China. However, investors interested in this stock should monitor tensions between the United States and China, as they may impact the firm's performance.
Silvercorp Metals exceeded analysts' revenue and earnings per share projections in the company's second-quarter last year. Silvercorp Metals constantly pays a tiny dividend to investors, which adds to the allure of this stock.
10. Wheaton Precious Metals
Wheaton Precious Metals is a streaming precious metals corporation. Rather than operating actual mines, Wheaton provides funds to mining firms to cover a percentage of the costs associated with mine development. In exchange, the corporation receives the right to purchase a portion of the metal produced by the mines at predetermined prices.
Between 2022 and 2026, Wheaton anticipates that its silver streams will represent approximately 40% of its production mix, and silver exposure is the highest among the company's streaming and royalty competitors.
Wheaton is contractually obligated to purchase the precious metal at an average of $5.81 per ounce until 2025. Any increase in the price of silver above that level results in profit for the corporation.
The company's emphasis on streaming enables them to make significant revenue, and Wheaton invests this money in new revenue streams and distributes dividends to shareholders. Wheaton's business model positions it to benefit from higher silver prices in the same manner that a mining firm would. However, it entails fewer hazards and potential cost overruns than actual mining.
11. First Majestic Silver
First, Majestic earns around half of its revenue from silver and half from gold, making the Canadian mining company one of the sector's cleanest silver options.
Although it is a Canadian corporation, First Majestic concentrates on Mexico because it produces more silver than any other country. The company now operates three mines in Mexico and is developing numerous additional silver mines.
Additionally, First Majestic owns and runs Nevada's Jerritt Canyon Gold Mine. It acquired the mine in 2021 as part of a strategy to diversify its activities. Even with the addition of a primary gold mine, First Majestic is exposed to more silver than any of its peers.
First, Majestic focuses on silver production to outperform precious metal prices. It can boost production while decreasing costs, resulting in revenues growing faster than silver prices. However, this business strategy exposes it to operational risks and cost overruns. Mining concerns, management errors, and exposure to other commodities can all affect the stock performance of the silver mining business.
First, Majestic feels it has the potential to outperform in the long run. It aspires to become the world's largest producer of primary silver, and it invests millions of dollars in locating and developing new silver mines each year.
12. Wildcat Silver Corp. (WS.TO)
Any respectable list of penny stocks would be incomplete without mentioning this Canadian precious metals company. Gold, silver, manganese, zinc, lead, and copper are among the metals targeted for extraction. The company owns 80% of the business activity interests in a Hermosa, Arizona, property.
13. Silver Standard Resources Inc. (SSRI)
Silver is the company's primary focus due to its exploration and operating activities in North and South America. In addition to silver, the corporation mines gold, zinc, copper, and lead. Argentina's Perquitas Mine is the country's largest mining enterprise, including 50 concessions and containing 3,6 million hectares of land.
14. Alexco Resources Corporation (AXU)
The company offers silver penny stocks and primarily focuses on producing and mining gold, silver, lead, and zinc at its Canadian mining sites. Apart from its primary mining operations, the company also provides project management, mine site rehabilitation, and consultancy services to other precious metals mining companies.
Who Should Invest in Silver Penny Stocks?
Silver's price may be somewhat variable. Silver prices increased by more than 45 percent in 2020, then gave back part of those gains in 2021, falling nearly 10%, before staging a double-digit rebound in early 2022. Silver prices fluctuated in response to economic, inflationary, and geopolitical anxieties. These triggers affected the precious metals and cryptocurrency markets.
On the other hand, silver's inflation-protective investment features are only part of the tale. Silver is a significant industrial metal, and it is critical for renewable energy in particular. Two prominent industrial demand drivers are the rapidly increasing solar energy and electric vehicle (EV) industries.
As a result, demand for silver is expected to increase in the next years, potentially driving its price higher. As a result, silver may be a viable option to profit from the expansion of sustainable energy.
Most investors prefer silver stocks to real metals such as coins and bars. Silver enterprises can frequently seek growth prospects when demand for silver increases, allowing their profits to climb faster than silver prices. As a result, they should outperform precious metals. Additionally, investors avoid the headaches and hazards associated with acquiring, storing, and insuring a physical asset by not owning the real metal.
Silver is an increasingly essential part of the economy as a distinct precious metal with industrial, consumer, and investor demand. As a result, silver mining companies and silver-focused exchange-traded funds (ETFs) may be appealing additions to various portfolios.
Conclusion
Silver penny stocks can be an excellent growth vehicle. However, they are quite volatile. Thus, it is prudent to conduct the study and diversify. However, this also implies they have great profit potential. Here is a longer list of silver mining businesses if you want to explore some larger silver stocks.
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