Gold & Silver

Silver Mining Stocks

We will discuss different silver mining stocks and provide our silver price forecast for 2021 and beyond. We will also look at why silver mining stocks and other forms of silver should be in your investment portfolio.

Silver Mining Stocks to Watch

Many Investors Believe that Silver mining stocks Will Perform Well in the Future

Silver mining 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 mining stocks?

What Silver Experts Say

Millionaire investor Doug Casey has been a proponent of owning silver mining 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 mining stocks as well. In fact, many gold mining companies also mine silver. Accordingly, here are some silver mining stocks that may be worth considering:

Franco-Nevada (FNV)    

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 mining 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 lead 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.

iShares Silver Trust ETF (SLV)

If you aren’t sure about investing in Silver mining stocks directly, perhaps you may consider a silver fund. The iShares Silver Trust ETF tracks based upon silver commodity pricing. Investing in this ETF would be similar to investing in an ETF that is aligned with a basket of different equities. These ETFs are considered less risky than individual silver mining stocks.

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.

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.

Current Pandemic and Subsequent Economic Crisis in the United States

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 silver mining 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 Silver mining 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 silver mining 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.

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 mining 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 silver mining stocks will continue to increase in value over the next few years.

Real money is sound money. Silver is real, sound money.

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 silver mining 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 silver mining stocks.

Many market watchers predict that gold and silver mining 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 $25-26 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+ 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, Silver mining 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!

Read More:

Best Silver Coins to Buy

Gold Bullion

Best Gold Coins to Buy

Goldmine Stocks

Value Investing Books

How Much Savings You Should Have at 40

Wealth Building Cornerstones

Real Estate Market Predictions

Why Saving Money is Important

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.

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