We will discuss some different Canadian silver stocks and provide our silver price forecast for 2021 and beyond. We will also look at why silver stocks and other forms of silver should be in your investment portfolio.
Silver Stocks to Watch
Many Investors Believe that Silver Stocks Will Perform Well in the Future
Canadian Silver Stocks have been overlooked for many years by investors. Moreover, precious metals have been unpopular and considered irrelevant. Since the 1990s, investors advisors have been recommending equities such as blue chip and now tech stocks for pensions and 401(k) investments. In short, this advice was largely correct. As a result, Wall Street has hit all-time price levels in the past 20+ years. However, things may have shifted in 2020. Consequently, could this be the time to invest in silver stocks?
Millionaire investor Doug Casey has been a proponent of owning Canadian silver stocks for decades. In fact, he has been investing in gold and silver mines for most of his life. During a recent interview, Casey discussed the political turmoil happening in the United States and rising gold prices.
“Look, there are quality small gold-mining companies run by really good, serially successful people that are geologists and mining engineers. That’s the kind of stuff you should buy. Buying major miners like Newmont and Barrick would also be profitable. But better to buy the next tier down — smaller, leveraged, growing. When these smaller gold stocks run, they can go 10 to 1 easily; some of them go 100 to 1. I’ve personally owned gold stocks that have gone 1,000 to 1… within just one gold cycle. So, this is the place to be, assuming I’m right about gold. I think I am.” -Doug Casey, The International Man
If you are bullish on gold stocks, then you should be bullish on silver stocks as well. In fact, many gold mining companies also mine silver. Accordingly, here are some Canadian silver stocks that may be worth considering:
FNV is a leading gold and silver royalty and streaming company. It operates from Toronto, Canada. Founded in 2007, they provide investors with exposure to the gold and silver stocks while limiting risk in the investment. This company has historically done well during economic downturns and is positioned to reap the benefits of increases in silver prices.
Pan American Silver Corporation (PAAS CFD)
One of the world’s largest silver mining companies, Pan American mines gold and silver. They are considered one of the leaders in the silver mining industry. Their silver stock price has performed well in 2020 and the expectation among many investors is that it will continue to grow.
First Majestic Silver Corporation (AG)
First Majestic is an international silver miner based in Canada. They also have mining operations in Mexico. The pandemic of 2020 led to bottlenecks in silver production, causing share prices to decrease recently. However, many analysts believe the company is positioned to make a strong recovery.
Wheaton Precious Metals (WPM)
Wheaton is considered a leader in traded stocks in the United States. It is the world’s largest silver streaming company. Wheaton has contracts in gold, silver and palladium. Its debt level is considered manageable and the company maintains a solid cash flow. This Canadian silver stocks company is headquartered in Vancouver, Canada.
SilverCrest Metals (SILV)
This is a junior silver stock and mining company that operates in Mexico. This one is probably considered riskier than the others detailed in this report. In fact, SilverCrest has only been listed on silver markets since March of 2018. However, it has shown continual price increases during this time period and may have future promise as an investment. This Canadian silver stocks company is headquartered in Vancouver, Canada.
MAG Silver (MAG)
This is a smaller silver mining company that still trades on the NYSE. MAG has historically been a stable stock to own and has been increasing in price throughout much of 2020. Mining operations in Mexico are promising with low extraction costs and a lot of upside potential. This Canadian silver stocks company is headquartered in Vancouver, Canada.
Market Bubbles Historically Destroy Markets and Smaller Investors
In 2000, Many Retirees Lost 50% of Their Investments When the Dot Com Bubble Burst
The Dot Com Bubble that began in March 2000 caused the S&P 500 Index to drop almost 50%. This bubble bursting lasted until 2007. That means that if you were planning to retire in 2000, and many of your investments were locked into a Wall Street 401(k) that fell 50%, you couldn’t retire. Many people at this time were forced to return to work because they couldn’t afford to retire.
Currently, Wall Street stock prices are at record-breaking levels. In late 2020, the Dow Industrial Average rose to an all-time high of 30,000. Prices are high, interest rates are low, and everyone is cheering the mania. The question is whether markets are overpriced in a bubble. Smart investors will see this as the time to get off the stock roller coaster and move to safer bets like Canadian silver stocks.
According to Experian data, consumer debt has grown to around $14 Trillion in 2019. Debt for Americans has been increasing steadily since at least 2009. This debt includes things like credit cards, home loans, vehicle loans and student loans.
In addition, Americans are struggling financially right now because of COVID-19 shutdowns. Many people live paycheck-to-paycheck and have no savings. As a result, a sudden loss of employment caused them to face economic ruin or bankruptcy. Unemployment rates are estimated to be around 10-20%. This is the highest unemployment rate seen in decades.
Debt, Mortgages and Home Foreclosures in the United States
- Total Debt to GDP for the United states is over 150%
- The Federal Reserve currently owns approximately 30% of all mortgages in the U.S. today (over $2 Trillion)
- US National Debt is now over $26 Trillion
- Home foreclosures are beginning to increase
Alarming Trends at the Federal Reserve and Debt-to-GDP Ratio
Two alarming trends are that the debt to GDP ratio is at 150% and that the Federal Reserve Bank owns 30% of US mortgage securities. First, most experts agree that when the debt-to-GDP ratio climbs higher than 100%, you are in the economic danger zone. Historically, high debt-to-GDP ratios have ended badly.
Unfortunately, this is bad news for the United States economy. As a result, people’s investments and retirements could be badly damaged. So, what does an investor do to minimize risk and survive the upcoming economic depression? Let’s look at silver and Canadian silver stocks.
Many investors recommend including precious metals like silver in your investment portfolio. It’s important for everyone to own silver. Here we’ll discuss the history of silver, why everyone should own silver, how to buy it and the best silver coins to own. Commodities such as silver (and gold) have stood the test of time. In fact, silver has been money for thousands of years. So, it makes sense to find the cheapest way to buy silver.
History of Silver
For thousands of years, silver bars and coins have been used as currency. Silver has the properties of money, which are portability, divisibility and tangibility. In fact, money was backed by silver and gold until 1933. Read more about the “US Dollar History: How the Dollar Became the World Reserve Currency” to learn more.
Why Everyone Should Own Canadian Silver Stocks
Silver is real money: It is Tangible, Secure, Private and Maintains Its Value Against Inflation
Silver is real money, which is tangible and is backed by something of value. You can hold it in your hand. Silver cannot be taken from a bank account. Hackers cannot steal silver from your computer, like Bitcoin. Finally, silver is kept safely and privately in a secure location. And Canadian silver stocks are just as secure as regular tech or blue-chip stocks like Apple or Microsoft.
Real money is resistant to inflationary forces and has a value that is based on demand. First, silver has a long history of maintaining its value against the currency of the day. No matter what the value of a dollar is, one ounce of silver is always equal in value to one ounce of silver. In addition, silver maintains a special balance with the value of gold, which fluctuates.
Physical Silver Coins are Affordable and Practical
Don’t have much money to spend? Purchasing silver, one-ounce coins, such as the American Silver Eagle, is one of the cheapest ways to buy silver. Currently, silver one-ounce coins sell for approximately $25. Silver coins easily fit in your pocket or purse. They can be used as gifts or exchanged for cash.
Silver Has a Limited Supply and Growing Demand
The Supply of Silver Is Finite; Demand for Silver Includes Industry, Jewelry and Money
There is a limited supply of silver on Earth. Silver Miners throughout the world have a finite quantity of silver available for mining. At some point, the amount of silver removed from mines will diminish and become zero. This is part of what creates the value and profitability for silver stocks.
At the same time, silver demand continues to grow. Silver has many uses in technology, jewelry, medicine and money. Jewelry made of silver has been popular for millennia, and continues to grow in demand. There are many industrial uses for silver including batteries, solar panels and electronics. In fact, more than 50% of silver mined today goes to industrial use. Of course, silver coins remain in demand all over the world.
One other important point about silver is that it has traditionally outperformed gold in bull markets. For example, from 1970 to 1980, silver increased in price (compared to US Dollar) by over 3,000%. Many investors believe that Canadian silver stocks will continue to increase in value over the next few years.
Real money is sound money. Silver is real, sound money.
How to Buy Silver
Buy Silver as Physical Coins/Bars or Goldmine Stocks
Investing in silver has never been easier. Silver merchants and brokerage firms are competing for your business online. If you want to purchase physical silver or gold, you can do this at your local coin shop.
Another option for purchasing silver is buying online. Buying from a website has become more secure in recent years, but you must do diligent research to verify the buyer. Only buy from established suppliers that have been around for a long time and have positive feedback. Preferably you can get a recommendation from a friend.
Finally, buying Canadian silver stocks is just as easy as buying stock in GM or Amazon. Many online brokerage firms offer the ability to buy silver stocks for a reasonable fee.
Silver Coin Dealers and Coin Shops
There are several methods for finding the cheapest way to buy silver coins and bars. The first option is to search for reputable coin dealers near where you live. Ask friends or look online for reviews of the local shops that buy and sell silver coins. Next, visit several coin dealers or coin shops in your area and get to know who they are and what they offer. Find a dealer who you enjoy dealing with and who is knowledgeable about silver and silver coins. Ask questions, like how they determine silver spot price. In addition, determine what fees apply. Get comfortable with whom you are dealing and get to know them.
Best Silver Coins to Buy
Silver Coins Recognized Around the World Include: Silver Eagle, Maple Leaf, Philharmonic, Panda and Britannia
Now that you understand the history and significance of silver and why buying real silver coins is important, let’s explore the best silver coins to buy. This is the cheapest way to buy silver. It’s also one of the easiest ways to stock up on silver.
There are five important one-ounce silver coins that are important to buy. The five most highly regarded silver coins are:
- American Silver Eagle
- Canadian Maple Leaf
- Austrian Philharmonic
- Chinese Silver Panda
- British Silver Britannia
These are the best silver coins to buy because they are recognized and trusted around the world. These coins are minted with precision and integrity. The minting is overseen and secured by the respective governments who are involved. When you travel around the world, all of these coins are well-known and recognized universally. Buying any one of these is considered to be a relatively safe bet.
Best Silver Bars to Buy
If you have more money to buy silver and don’t want to have stacks of coins lying around, then buying silver bullion or silver bars is an option. Silver bars have a few options that make them desirable when compared to silver coins. Silver bars take up less storage space than a comparable Dollar value of coins. In addition, bullion bars have lower premiums compared to silver coins. And silver bars come in varying sizes from one gram up to 400 ounces.
Smaller bars are recommended for several reasons. Large silver bars are not very divisible. For example, how do you pay for dinner with a 400-ounce silver bar (currently valued around $10,000)? In addition, larger silver bars require assay when exchanging and there is also a higher rate of counterfeiting with large bullion bars.
What the Future Holds for Silver
We at Piggy Bank Coins believe that silver has a bright future. Holding a tangible asset such as silver will always be highly regarded by investors. Having Canadian silver stocks in your investment portfolio is considered by many to be a safe and secure option. It’s important to grow your wealth, but retaining a portion of your wealth is critical too. Silver is a real, tangible money that can be a store of wealth for a lifetime. We believe demand will continue to grow and that investors should continue to hold Canadian silver stocks.
Many market watchers predict that gold and silver stocks will trend much higher over the next few years for several reasons. First, analysts believe that demand for silver and gold will continue to increase for uses in technology, jewelry, money and various other uses. Second, many economists are concerned about world-wide debt rates increasing, which can lead to inflation. As economies struggle with increasing inflation, silver tends to increase in price relative to paper currencies. As a result, many smart investors move money to silver and gold portfolios.
Silver Price Predictions in 2021
Most forecasters foresee silver climbing to around $30 per ounce in 2021. This is a modest increase that most expect. However, there are many more market experts who see prices going much higher into the $30-40 range. Although it is impossible to predict the future and know exact prices, it seems clear that silver is heading higher in the foreseeable future. And if hyperinflation ever hits the US Dollar, Canadian silver stocks and the silver price will reach hundreds or thousands of dollars per ounce.
Get a copy of the “Free Gold and Silver Buyer’s Guide” today. It’s free and has some great information in it about investing.
If you want to learn about the history of money, check out Mike Maloney’s free “Hidden Secrets of Money” video series. It’s a silver of information that can help you better understand money and where the world stands today financially. Highly recommended!
Disclaimer: It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.
In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.