Silver prices are up, will these silver stocks perform?
When talking about silver stocks, it’s hard not to mention the huge rally over the last year and a half. When the pandemic started, the price of silver took a dive as did many other assets. But then investors started putting a lot of their money into precious metals such as silver and gold. For those who don’t want to invest directly into these metals, silver stocks and gold stocks are a good alternative.
Silver rallied to its highest point ever back in 2020. In early 2021, the metal saw a large uptick as a result of increased industrial demand and Reddit traders. That’s right, silver got involved with retail investors after the whole GameStop and WallStreetBets situation that happened.
But what things are affecting silver prices in 2021? The most prominent of all things affecting silver stocks is world news. More specifically, the direction that the pandemic is going in. In the United States, 45% of the population has received the COVID-19 vaccine. Restrictions are loosening or completely gone in some states, which is the beginning of economic recovery.
Right now silver prices are close to $28 per ounce. It has been around this price point for a while now. Industrial demand is increasing for silver as the year progresses due to the reopening of many businesses around the world. In addition to this, retail sales for silver have drastically increased as things continue to reopen around the world. There is the setback of some countries not starting to reopen because of growing COVID-19 cases like in India. With all of this information to note, let’s take a look at three silver stocks to watch in June.
Top Silver Stocks To Watch
- First Majestic Silver Corp. (NYSE: AG)
- Endeavour Silver Corp. (NYSE: EXK)
- Fortuna Silver Mines Inc. (NYSE: FSM)
First Majestic Silver Corp. (NYSE: AG)
One silver stock to watch that we have talked about a lot is First Majestic Silver Corp. If you have not yet heard of the company, let’s get you up to speed. First Majestic acquires, explores for, develops, and produces products at mineral properties. Its main product that it searches for is silver deposits. It owns various mines like the La Encantada mines, San Dimas, and Santa Elena in Canada and Mexico.
On May 6th the company caught attention with the release of its first quarter financial results. It also announced its inaugural dividend payment and the appointment of the VP of operations. First Majestic’s revenue totaled $100.5 million which was 17% higher than last year. Its realized average silver price grew by 56% compared to the start of Q1 2020.
Keith Neumeyer, the CEO of the company said, “Due to the high demand for physical coins and bullion, our online retail store generated $4.8 million in silver sales during the quarter, or approximately 5% of our $101 million in total quarterly revenues, representing a new record in its 13-year online history. Furthermore, due to the current demand, the Company is working with numerous mints and refiners to direct as much silver sales as it can through its online store as possible.” With this in mind, will you add AG stock to your mining watchlist?
Endeavour Silver Corp. (NYSE: EXK)
Endeavour Silver Corp. is a high performing silver stock that is moving upwards at the moment. Endeavour is a mining company that focuses on acquisition, exploration, and development in regards to finding silver. It will also extract, process, and refine the silver metal too. This is done at two mines owned by the company that are located in Chile and Mexico. EXK stock has been performing very well in the last year.
On May 20th the company announced that it has intersected high-grade gold-silver mineralization at its Bolanitos Mine in Durango, Mexico. VP of Exploration Luis Castro said, “We continue to intersect strong drill results as we step out from the current margins of the Melladito and Belen orebodies, with a number of other targets to drill, along both the Melladito and Belen veins.”
That was the latest update from the company that has not provided many other recent updates. As silver prices move upwards, we will see what the future performance of Endeavour Silver Corp. looks like as June begins. For now, will EXK make it on to your list of silver stocks to watch?
Fortuna Silver Mines Inc. (NYSE: FSM)
Fortuna Silver Mines Inc. is a silver stock that explores, extracts, and processes precious and base metal deposits. All of its operations are generally out of Latin American countries like Peru and Argentina. Fortuna owns the Caylloma mine, San Jose mine, Lindero project, and more. This company has seen positive performance whenever silver is doing well in the market.
Recently the company provided an update on the status of a royalty claim at the San Jose Mine, Mexico. It also released its first quarter financial results. The CEO of the company Jorge A. Ganoza said, “Our record financial performance in the first quarter reflects the combination of strong operating performance at San Jose and Caylloma, Lindero’s first full quarter of contribution to sales, and favorable metal prices.”
In the last month FSM stock has gone from about $6.25 per share to more than $7 per share on average as of June 1st. The positive performance of FSM has piqued the interest of investors. One year ago the company was considered a penny stock. So will Fortuna be added to your list of silver stocks to watch?
Silver Stocks In June
This month could be key for silver. If reopening continues and industrial and retail demand continues to grow. We will see what happens to the sector as restrictions go down and COVID cases fall in many places around the globe. For now, it can be useful to create a list of silver stocks to watch to keep track of everything. So which companies will make it on to your watchlist?
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