Could These Silver Stocks Be On The Upside Soon?
If you have had an eye on silver stocks in the year, you know the potential that these assets hold. In 2020, the market for silver was huge. This resulted in a silver rally to the highest price it has ever been. The pandemic made traders turn to metals instead of dollar assets because the economy is failing. This is a good part of the reason that silver stocks increased in value to such an extent.
So where does this place the metal in 2021? Silver is currently being impacted by a variety of things. One of these happens to be unemployment reports released by the U.S. Labor Department. In recent times they will rise or fall a little bit, but still remain high. With unemployment so high it can be much harder for economic recovery. This means that silver could potentially stay at its current key price point for a while.
Top Silver Stocks To Watch
Silver has been at or near $25 per ounce for a good while now. This sector has not been shy to retail traders getting involved as well. In early February many retail traders put silver in their sights which caused a massive short lived uptick for the metal. Now retail traders often invest in some silver stocks from time to time. The whole GameStop and retail trader fiasco brought a lot more attention to these mining stocks.
More attention equals more investors, regardless if the main hype died down rather quick. Currently higher inflation expectations in the world are not being fully impacting on gold and silver stocks. With things so volatile in the market it can be unsure where to invest. Let’s take a look at some silver stocks to watch that could see the upside soon.
Fortuna Silver Mines Inc.
This first silver stock to watch just released an important update that has increased its stock price. Fortuna Silver Mines is a mining corporation that explores, extracts, and processes different precious metals. Actively, the company searches for silver, gold, zinc, and lead deposits. Its main property is the Cayloma mine and San Jose mines. It additionally runs the Lindero Gold Project.
On April 12th, Fortuna Silver Mines released its first quarter 2021 production and financial results. Let’s start off with its silver production as this is most important. It reported 1,913,755 ounces of silver, 5% higher than 2020. Its gold production rose 242% year over year at 34,555. Its lead and zinc production increased by 6% and 1% respectively. All of its mines seem to be on track to reach annual production guidance based on these numbers. Since this update was released, FSM stock price has gone up by more than 4.6%. FSM stock saw a sharp decline in the last month, but now has recovered putting it in the green for the last month.
Endeavour Silver Corp.
Now let’s talk about another silver stock that just closed a big deal. Endeavour Silver Corp. is a mining corporation that will acquire land, explore on said land, and develop it. The company also works on the processing, refining, and reclamation at its mineral properties. Endeavour’s primary focus is searching for gold and silver deposits. On April 12th, Endeavour announced the closure of the sale of its El Cubo Mine to VanGold Mining. VanGold paid $15,000,000 to Endeavour in cash, common shares, and promissory note. VanGold additionally agreed to pay Endeavour up to $3,000,000 more in contingent payments.
The CEO and Director of Endeavour, Bradford Cooke said, “We are pleased to close this transaction and I congratulate VanGold for helping make it a win-win deal for both companies. They are in the best position to create more value out of the El Cubo assets given their emerging El Pinguico project located very close to El Cubo, and we now become the largest shareholder of VanGold.” Despite this positive advancement, EXK stock is down on the day of. This is likely due to the larger stock market pull back on the same day, as all silver stocks are down.
EXK stock did just see a large uptick last week though. The company released its first quarter production results on April 8th, 2021. Endeavour’s silver production rose 22% year over year. Its gold production increased by 31% as well. All of its current silver production is expected to meet or exceed its 2021 guidance at the moment. Despite the company still having to deal with the pandemic, it is showing much higher performance. As the COVID situation betters in the world, it could be interesting to see if Endeavour can move even higher. When this was announced EXK stock went up nearly 8%, but has now pulled back.
MAG Silver Corp.
The last silver stock to buy or sell has seen a huge increase in price as a result of its 2020 annual results. Let’s give you some context on who MAG Silver Corp. is first. MAG Silver is a mining business that will primarily acquire land, explore it, and develop mineral properties within. It searches for silver, gold, lead, and zinc deposits respectively. Currently the company holds a 44% interest in the Juanicipio project in Mexico.
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March 31st was a really good day for investors of MAG Silver. The company reported its 2020 annual results. MAG’s cash and cash equivalents increased significantly year over year, and the company has no long term debt. The cause of this was a private placement, rising silver prices, and positive mine progress. The day before the announcement MAG stock was at $14.40 a share on average. After the results were released, MAG stock price increased to as high as $17.55 a share at one point. MAG stock has pulled back now, but it still remains at $16.68 a share, more than $2 higher than before its results.
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