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10 Best Silver Mining Stocks to Invest In

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·11 min read
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In this article, we will be looking at the 10 best silver mining stocks to invest in. If you want to skip our detailed analysis of the precious metals industry, you can go directly to the 5 Best Silver Mining Stocks to Invest In.

As inflation fears are beginning to grow, more attention is being focused on the precious metals industry, particularly on gold and silver as viable hedges against inflation. Silver itself can be considered to be doing even better than gold, considering the metal's dual use as both a precious and industrial metal. A Bloomberg report has explained how silver may be set to outperform gold during these financially turbulent times, as the metal is also a core material in solar panels and plays a large role in the energy industry as well. Analysts and major stakeholders like Philip Klapwijk, the managing director of Precious Metals Insights Ltd., has commented that in light of silver's role in industrial sectors like the solar, 5G and automotive sectors, demand for the metal seems set to rise steadily over the coming years, especially in light of more robust investment in the metal leading to the creation of more silver storage spaces as well.

The Silver Institute has stated that physical investments in silver are expected to reach 257 million ounces this year, which would mark the highest value in six years of investing in the metal. Citigroup has also forecasted the metal to be traded at a higher value of $28 to $30 an ounce in the latter half of 2021, while Morgan Stanley stated that the value would average $25 an ounce, a 22% increase from 2020. Additionally, to make the case for silver beating gold this time around, analyst Rohit Savant from CPM Group has commented that silver's demand in the energy industry would boost its price even higher, resulting in the metal beating gold because of a combination of factors including cheaper valuation and strong investment demand.

The retail-investor frenzy led by the online investors of Reddit's WallStreetBets forum, infamous for their short squeeze of GameStop Corp. (NYSE: GME), has also racked up silver demand. This January, the metal reached an eight-year high, with a rise in most-active futures by 13% to $30.35 an ounce and a purchasing spree of silver coins and bars, according to Bloomberg. BlackRock Inc. managed iShares Silver Trust (NYSE: SLV) declared a net inflow of $944 million during this time period, with CME Group raising futures margins by 18%. Conflicting opinions on Reddit and elsewhere have also made it clear that a short squeeze of a deeper market like the silver trade may not be as easy as it was for GameStop Corp. (NYSE: GME), as also commented by Howie Lee, an Oversea-Chinese Banking Corp. economist.

Regardless, rising inflation, higher demand because in a range of industrial sectors, and a retail-investor driven buying binge has resulted in silver being considered not only a good hedge against inflation, or a typical precious metal, but an overall smart investment choice for anyone in any position. As such, stocks like First Majestic Silver Corp. (NYSE: AG), Wheaton Precious Metals Corp. (NYSE: WPM), Hecla Mining Company (NYSE: HL), and iShares Silver Trust (NYSE: SLV) are becoming increasingly attractive investment options. We have thus compiled a list of the best silver mining stocks to invest in.

Best Silver Mining Stocks
Best Silver Mining Stocks

Photo by Ricardo Gomez Angel on Unsplash

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Without further ado, let's look at the 10 best silver mining stocks to invest in. These stocks have been selected based on hedge fund sentiment, fundamentals, analysts' ratings, and growth potential based on core business strengths.

10 Best Silver Mining Stocks to Invest In

10. Silvercorp Metals Inc. (NYSE: SVM)

Number of Hedge Fund Holders: 10

Silvercorp Metals Inc. (NYSE: SVM) is a mining company working to acquire, explore, develop, and mine mineral properties in China and Mexico with a focus on silver, gold, lead, and zinc metals. The company owns the Ying silver-lead-zinc project in the Ying Mining District in Henan Province, China, and ranks 10th on our list of the best silver mining stocks to invest in.

Raymond James has initiated coverage of Silvercorp Metals Inc. (NYSE: SVM) with a Market Perform rating, with analyst Craig Stanley commenting that the company's financial year 2022 production can be expected to be 9.3 million Ag equivalent ounces. This May, Silvercorp Metals Inc. (NYSE: SVM) announced its semi-annual dividend of $0.0125 with a forward yield of 0.39%. In the fiscal fourth quarter of 2021, Silvercorp Metals Inc. (NYSE: SVM) had an EPS of $0.03, missing estimates by -$0.02. The company's revenue was $35.73 million, up 89.47% year over year but missing estimates by -$0.47 million. The company's gross profit margin is 65.48% and the stock has gained 6.53% in the past year. It currently has three Buy ratings and a consensus Overweight rating, according to the Wall Street Journal.

By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Silvercorp Metals Inc. (NYSE: SVM). The total value of their stakes was roughly $30.8 million. This is compared to 12 hedge fund holders in the previous quarter with a total stake value of about $51.3 million. Like First Majestic Silver Corp. (NYSE: AG), Wheaton Precious Metals Corp. (NYSE: WPM), Hecla Mining Company (NYSE: HL), and iShares Silver Trust (NYSE: SLV), Silvercorp Metals Inc. (NYSE: SVM) is a good silver mining stock to invest in.

9. Endeavour Silver Corp. (NYSE: EXK)

Number of Hedge Fund Holders: 10

Endeavour Silver Corp. (NYSE: EXK) is a precious metals mining company working to acquire, explore, develop, extract, process, and refine mining properties in Mexico and Chile. The company explores gold and silver deposits among other precious metals and ranks 9th on our list of the best silver mining stocks to invest in.

This April, Endeavour Silver Corp. (NYSE: EXK) gained in light of robust growth in its first-quarter production: gold production was up 31% year over year to 11,109 ounces, while silver production was up 22% year over year to 1.05 million ounces. In the first quarter of 2021, Endeavour Silver Corp. (NYSE: EXK) had an EPS of -$0.03, missing estimates by -$0.06. The company's revenue was $34.43 million, up 56.17% year over year but missing estimates by -$4.35 million. The company's gross profit margin is 43.92% and Endeavour Silver Corp. (NYSE: EXK) has gained 7.37% in the past 6 months and 8.7% year to date as well.

By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Endeavour Silver Corp. (NYSE: EXK). The total value of their stakes was roughly $9.02 million. This is compared to 10 hedge fund holders in the previous quarter with a total stake value of about $19.5 million. Like First Majestic Silver Corp. (NYSE: AG), Wheaton Precious Metals Corp. (NYSE: WPM), Hecla Mining Company (NYSE: HL), and iShares Silver Trust (NYSE: SLV), Endeavour Silver Corp. (NYSE: EXK) is a good silver mining stock to invest in.

8. Fortuna Silver Mines Inc. (NYSE: FSM)

Number of Hedge Fund Holders: 12

Fortuna Silver Mines Inc. (NYSE: FSM) is a mining company extracting and processing precious and base metal deposits in Latin America. The company's properties include the Caylloma silver, lead, and zinc mine in southern Peru, the San Jose silver and gold mine in Southern Mexico, and the Lindero gold project in Argentina. It ranks 8th on our list of the best silver mining stocks to invest in.

This July, BMO Capital resumed its coverage of Fortuna Silver Mines Inc. (NYSE: FSM) with an Outperform rating. Analyst Ryan Thompson considers the selloff since the announcement of the acquisition of Roxgold (OTC: ROGFF) is overdone, and that the company is actually a strong and diversified investment option. On June 29th, Fortuna Silver Mines Inc. (NYSE: FSM) shareholders approved the company's acquisition of Roxgold (OTC: ROGFF). The deal was announced earlier this year and was valued at $891 million. In the first quarter of 2021, Fortuna Silver Mines Inc. (NYSE: FSM) had an EPS of $0.14, beating estimates by $0.05. The company's revenue was $117.8 million, up 148% year over year and higher than the previous quarter's $103.5 million revenue. Its gross profit margin is 44.11% and the stock has gained 13.22% in the past year.

By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Fortuna Silver Mines Inc. (NYSE: FSM). The total value of their stakes was roughly $19.8 million. This is compared to 11 hedge fund holders in the previous quarter with a total stake value of about $29.7 million. Like First Majestic Silver Corp. (NYSE: AG), Wheaton Precious Metals Corp. (NYSE: WPM), Hecla Mining Company (NYSE: HL), and iShares Silver Trust (NYSE: SLV), Fortuna Silver Mines Inc. (NYSE: FSM) is a good silver mining stock to invest in.

7. First Majestic Silver Corp. (NYSE: AG)

Number of Hedge Fund Holders: 15

First Majestic Silver Corp. (NYSE: AG) explores and develops mineral properties, mainly silver and gold, in Mexico. The company holds 100% interest in the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine. It ranks 7th on our list of the best silver mining stocks to invest in.

In May, National Bank analyst Don DeMarco upped the stock's price target to C$21 from C$20 and kept a Sector Perform rating.

This May, First Majestic Silver Corp. (NYSE: AG) declared its quarterly dividend of $0.0045 per share, with a forward yield of 0.12%. In the first quarter of 2021, First Majestic Silver Corp. (NYSE: AG) had an EPS of $0.03, missing estimates by $0.03, while its revenue was $100.52 million. The company's gross profit margin is 40.74% and it has gained 9.75% in the past 6 months and 9.9% year to date.

By the end of the first quarter of 2021, 15 hedge funds out of the 866 tracked by Insider Monkey held stakes in First Majestic Silver Corp. (NYSE: AG). The total value of their stakes was roughly $54.7 million. This is compared to 12 hedge fund holders in the previous quarter with a total stake value of about $84.8 million.

6. Hecla Mining Company (NYSE: HL)

Number of Hedge Fund Holders: 16

Hecla Mining Company (NYSE: HL) operates in the US and internationally to discover and develop precious and base metal properties. It offers lead, zinc, and bulk concentrates, alongside unrefined gold and silver bullion bars. The company ranks 6th on our list of the best silver mining stocks to invest in.

This May, Hecla Mining Company (NYSE: HL) announced its quarterly dividend of $0.01125 per share, representing a 28.4% increase from the company's previous dividend of $0.00875. In the first quarter of 2021, Hecla Mining Company (NYSE: HL) had an EPS of $0.06, beating estimates by $0.02. Its revenue was $210.85 million, up 53.99% year over year and beating estimates by $6.37 million. The company has a gross profit margin of 47.78% and Hecla Mining Company (NYSE: HL) has gained 7.18% in the past 6 months and 9.87% year to date. In May, the stock's price target was raised by CIBC analyst Cosmos Chiu to $7.50 from $6.75 with a Neutral rating.

By the end of the first quarter of 2021, 16 hedge funds out of the 866 tracked by Insider Monkey held stakes in Hecla Mining Company (NYSE: HL). The total value of their stakes was roughly $39.7 million. This is compared to 10 hedge fund holders in the previous quarter with a total stake value of about $38.05 million.

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Disclosure: None. 10 Best Silver Mining Stocks to Invest In is originally published on Insider Monkey.