Silver Stocks To Watch in 2020
Many traders are putting their money into gold stocks. But what about silver? In 2020, silver seems to be outperforming gold in many instances. Some investors don’t consider silver stocks, which can be a mistake. The opportunity to make money with this precious metal has been strong this year. From the very end of 2019, silver prices have increased by more than 50%. This is 66.67% higher than gold’s price increase of around 30% and shows the clear growth of silver in 2020.
The economy is the current issue for silver and gold at the moment. Silver is managing to rise more than the latter, but why is this? Analysts predict that the economy could recover soon which would bring the price of silver much higher. Silver is used often in the industrial sector too.
If the industrial sector performs well, silver will additionally. Silver is still more volatile than gold, but that does not mean it is a bad investment. So let’s look at some silver stocks that have been catching the interest of investors. Will these end up on your list of silver stocks?
Silver Stocks To Watch in 2020: Walcott Resources Ltd.
The first silver stock to watch is Walcott Resources Ltd. (WAL Stock Report). Walcott Resources is an acquisition and exploration silver company. It recently set its eyes on Australia with its Tyr Project. Walcott has already found high-grade zinc-lead-tin mineralization. This silver company expects to identify up to 4,710 grams per ton of silver.
In the world of silver, that is a very high expectation. Many comparable mines have an expectation more around 445 g/t Ag. This Tyr Project is separated into two mines that have not been operating for over 80 years. These include the Torny Underground Mine and the Burra Silver Mine. Back in early August 2020, Walcott closed a non-brokered private placement of up to 4 million units. Each unit of the company was priced at $0.10 per unit for proceeds of $400,000.
With Walcott making moves like this, could it be the next silver stock to watch? The potential is there with the Tyr Project that the company is running. That makes Walcott a perfect example of a silver stock to watch in this case. Who knows what the future may hold especially with the economy in a tricky spot. But with the expectation for an economic recovery, things could end up being rather positive for Walcott if the Tyr Project goes according to plan.
Silver Stocks To Watch in 2020: Fortuna Silver Mines Inc.
The next silver stock to watch is Fortuna Silver Mines Inc. (FVI Stock Report). Fortuna is a silver mining company that operates two mines, one in Peru and one in Mexico. Back in 2016 Fortuna purchased Goldrock Mines for $129 million CAD.
Currently, this mine is under construction. On August 13th, Fortuna reported its financial results for the second quarter of 2020. It seems that Fortuna is still trying to stay afloat during the current economic issues in the world.
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Sales came in at $44.5 million, down 34% from 2019’s $67.9 million. This was a net loss of $5.7 million compared to a net income of $10.3 million year to year. The president and CEO of Fortuna said, “Although the unprecedented volatility and government-mandated shutdowns during the second quarter have resulted in a $5.7 million net loss, our cost and investment reduction plans have allowed us to maintain a neutral free cash flow position from ongoing operations. We continue to face challenges under the current environment, but remain optimistic as we adapt and refine our plans to cope with COVID-19 related constraints.”
Silver Stocks To Watch in 2020: Aurcana Silver Corporation
Now let’s talk about Aurcana Silver Corporation (AUN Stock Report), a silver stock that has been climbing in share price during 2020. Aurcana is an exploration, development, and operational silver company that also searches for gold, lead, copper, and zinc deposits. The company owns the Revenue-Virginius Mine in Colorado, and the Shafter-Presidio silver property in Texas.
On July 28th, Aurcana closed a second and final tranche of non-brokered private placement for $12,275,700 CAD. Its most recent announcement comes from August 18th when Aurcana Corporation changed its name to the now Aurcana Silver Corporation. AUN stock has had quite the year. From late February to now, AUN stock price is up more than 220% a share. In addition to this, from late July to August AUN stock is up about 7%. As the economy continues to recover, AUN stock price could as well. That is why this company is a silver stock to watch.
Silver Stocks To Watch in 2020: Endeavour Silver Corp.
The last silver stock to watch is Endeavour Silver Corp. (EDR Stock Report). Endeavour Silver Corp. actively acquires, explores, develops, extracts, processes, and refines at its mining properties. Endeavour has property in Mexico and Chile. On August 4th, Endeavour Silver released its second-quarter earnings results. The company reported that its earnings per share were up 75% year over year to $0.02. This was behind the analyst estimate of $0.03.
In addition to this, Endeavour reported revenue of $20,201,000 which was 31.25% less year over year. This was way below the analyst estimate of $40,030,000. These reports have caused EDR stock to fall about 19% as of August 28th. Are investors eyeing this as a dip opportunity or is a further slide coming? Despite this drop, EDR stock price is still much higher than at the start of the year. From late February to August 28th, EDR stock is up 131%.
As mentioned before, silver stocks will move depending on how the industrial sector is performing. In many cases, silver stocks are outperforming gold stocks. As the economy recovers more, some silver companies will be able to recover as well. Despite some of these silver stocks being down at the moment, their share price is still much higher than the beginning of 2020. Will these companies be considered for your list of silver stocks?
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