Silver Stocks: The Best Performing Silver Stocks to Invest in as a Beginner Investor
Silver Stocks are an excellent investment for beginners. The best-performing silver stocks to invest in may be different than you think.
Did you know that there's a correlation between the price of silver and stock prices? When the value of gold falls, it can often mean that investors are moving away from precious metals like gold and into stocks. This has caused some experts to say that now is the time for savvy investors to buy up undervalued investments like silver stocks before they go up in price even more!
What Are Silver Stocks?
Silver stocks are shares in the ownership of silver mining companies. They can be bought and sold like any other stock on the market, but unlike necessities like food or gasoline, they don't always go up in value. Depending on how well a company is run, it may have a successful year or fail to meet its quotas for production.
Why Buy Silver Stocks?
Silver is an essential mineral that everyone needs in order to survive. This means that no matter how bad the economy gets, there will always be demand for it because regardless of what happens, people are still going to pay money to keep themselves alive. Not only does this make silver a safe bet for investors, but it also makes it a valuable commodity. Silver can do anything from keeping our electronics working to keeping us warm at night, which means that regardless of what happens, silver will always be in demand. Since people are always going to want this precious metal regardless of how the economy is doing, getting into silver stocks now could mean huge gains later on regardless of what happens with the economy.
There are two ways to make a profit from silver stocks;
· The first is to buy shares of silver stock ETFs or mutual funds.
· To invest in firms that produce or process this precious metal.
Both methods have their own benefits, which means that both are great ways for investors to make money. Although silver prices have been falling more often than they have been rising recently, there is a long-term pattern of steadily increasing prices. It has not always done so in nominal terms, but the price has dramatically increased when adjusted for inflation.
This means that it is extremely cheap to buy huge amounts of silver right now, giving investors a good opportunity to buy silver and watch the value of their investments rise. Although there are two major ways that investors can invest in silver, this article will only discuss these methods in detail: First is to buy shares of silver stock ETFs or mutual funds, and the second is to invest in companies that produce or process this precious metal.
Why You Should Invest in Silver Stocks for Beginners
Silver is a precious metal that has been used in jewelry and coins for thousands of years. In fact, the name "silver" comes from the Anglo-Saxon word seol for which means shining stone because this material shines like no other when it is polished. Silver has many practical uses, including bandages to help stop bleeding, electronics, medical devices, and silverware. But what makes silver truly valuable is its use in coins which is why some of the largest coin manufacturers are located in China, Canada, Australia, and the United States.
The best way to invest your money into this precious metal for beginners is through stocks. Buying shares of an ETF or mutual fund that specializes in silver will increase your chances of profiting from this metal's price fluctuations. In addition, you can buy physical silver, which includes bullion coins, bars, and rounds.
In order to store physical silver, you should purchase a safe that is either fireproof or waterproof. It is also a noble idea to protect your assets by insuring the items. If you are looking to purchase silver for beginners, it is advised that you look into ETFs or mutual funds, stocks, and physical silver.
The Best Performing Silver Stocks
If you still want to invest directly in silver mining companies, make sure you understand how it works before investing. It never depends on stock to give you the returns of silver prices as the stock market is not as volatile as it used to be.
A unique feature that can help investors own shares of individual mines or exploration sites makes them more flexible to the volatility of silver prices. But this is not a general rule as it depends on how long they have been operational and the company's financial health, history of production, costs used in mining or exploration activities, etc.
Some popular or top-performing stocks are Coeur Mining Inc.(CDE), Pan American Silver (NASDAQ: PAAS), Silver Standard Resources Inc.(SSRI).
1. Silver Wheaton
· Corp. (SLW)
· Market cap at $3.6B
· Currently trading at $26.02 with a 52-week range of $20.92 -$33.67
· EPS growth of -1%.
Silver Wheaton Corp. (NYSE: SLW) is a silver and gold streaming company that offers an alternative to investing in metal or mining stocks. When you invest in SLW, it's like betting on the future price of silver and not on production volumes. Index funds are another way to invest in precious metals.
Silver Wheaton is debt-free and pays no dividend; silver equivalent production is stable with a 4% increase in equivalent silver ounces sold in the last quarter. SLW is a low-cost silver and gold streaming company that provides upfront capital to resource developers and miners in exchange for long-term silver and gold production at reduced costs.
This company's share price has been negatively affected by two factors; lower prices for silver which have hurt all other producers/streamers, and uncertainty caused by the oil market downturn, which is hitting Canada particularly hard because it is a major oil source.
2. Pan American Silver Corp
· Market cap at $1.5B
· Currently trading at $17.41 with a 52-week range of $14.75 -$21.06
· EPS growth of 58%.
Pan American Silver Corp is debt-free and pays no dividend; silver equivalent production is stable with a 2% increase in equivalent silver ounces sold in the last quarter. PAAS is a low-cost silver and gold streaming company that provides upfront capital to resource developers and miners in exchange for long-term silver and gold production at reduced costs.
Benefits of Investing in Silver Stocks
Like any other investment, investing in silver stocks comes with numerous benefits that you can enjoy as an investor. Some of such noted benefits include;
There are no Silver Cyber Risks- you can explore the silver stock investment through digital trading, paper profits, or shares. These ways of investing your silver investments are similar in a way that they are not tangible; hence there are no risks associated with them. As you start investing in silver, you will also realize that it doesn’t require too much internet presence, hence securing any cyber theft.
Protection Against Inflation- inflation involves a general increase or decrease in prices in the exchange market. Because silver is not part of any currency, it cannot be made easily thus not affected by inflation.
Excellent Purchasing Power- purchasing power is the ability of money to buy goods and services. Silver has a high purchasing power because it is not affected by inflation at any point in the exchange market.
Silver is Inexpensive to Start- silver ranks as one of the cheapest investments you can make no matter the silver bullion provider you decide to use. Although it is inexpensive to buy, silver is one of the precious metals that hold great value for you.
Silver has been in the market for a long time as a precious metal and still makes the best investment in the stock exchange market. Whether you are new or a pro in the exchange market, silver stocks give you an easy and excellent way you can multiply your wealth. Try the silver stocks today!