Silver mining stocks: how to buy, influences, and more

Silver stocks typically represent mining or streaming companies and provide an alternative to silver investing that doesn’t require buying the physical metal. Learn more about silver mining stocks here.

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What are silver stocks?

Silver stocks are shares in companies involved in the silver industry that allow investors to trade the precious metal without directly buying silver bars or coins. Typically, these stocks represent companies that either directly mine silver for both jewelry and industrial use or silver streaming companies who buy silver wholesale from mining companies.

Silver you buy as a direct investment is known as bullion, a term used for refined precious metals such as gold and silver that exist as bars or coins. Bullion investments are often used to hedge against other investments or as a safe-haven in times of market turmoil. Learn more about trading silver bullion.

Opposed to silver bullion, silver mining stocks provide more volatility and a larger range of options for trades because these companies more strongly impacted by market forces such as supply and demand. Keep reading to learn more about these mining stocks. 

Silver mining stocks

Silver mining stocks represent companies who mine and refine silver, often as a byproduct of mining other metals. These companies are known as ‘silver miners’ and their stock rises not just from silver’s appreciation but also through the exploration and development of mines, mainly in South America.

Pure-play silver miners are exceedingly rare. Almost every company involved in mining the precious metal makes most of their revenue from other metals such as copper, aluminum or gold, with silver mined as a byproduct. Because of this, it’s important to know each company’s mining composition and follow the factors affecting those additional metals. 

Silver streaming stocks

Other notable silver stock companies include ‘silver streamers’ – companies that finance mining operates in exchange for a percentage of the metal mined. These companies receive an agreed upon percentage of product from the mining companies they finance, then sell it for either industrial use or to be turned into jewelry. 

This specialization between mining and streaming companies allows silver miners to focus on the exploration and development of mines without having to devote resources to moving the product, and vice versa for silver streamers. One of the oldest and largest silver streaming companies is Wheaton Precious Metals, profiled below.

Silver ETFs

Silver ETFs are an easier option for investing in silver mining companies because they provide exposure to the entire industry rather than specific companies. ETFs, or exchange traded funds, work by grouping companies with a common factor together into one stock. Providing traders with a breadth of diversity in the ease of a single stock. ETFs can either be unweighted, meaning the money in the fund is equally spread across all included companies, or weighted, where with the largest companies getting a majority of the fund’s capital.

The most prominent silver ETF, or exchange traded fund, is the Global X Silver Miners ETF which includes a weighted composition of the largest silver mining companies. More information on the Silver Miners ETF can be found below.

What moves silver stocks?

The price of silver stocks is most influenced by each company’s exploration and development of silver mines and whether they meet, exceed, or fail to reach their mining estimates for a given period. The price of silver as a commodity and its ties to the US dollar also affect all silver mining stocks as well as the overall demand for the precious metal.

The demand for silver isn’t leaving anytime soon. Silver has the highest electrical conductivity of any metal, making it a key component in batteries and electronics. It’s also popular in dentistry and dining ware because of its anti-bacterial property.

The demand for silver is expected to grow as industries shift towards green energy as its use in batteries is key for storing solar power and driving electric vehicles.

Silver is also a popular precious metal to invest in as a safe-haven during economic uncertainty. Although silver is not as popular or costly as gold, it’s value against the US Dollar works in a similar fashion. However, it is worth noting silver is easily outperformed by gold during economic downturn.

Because of its volatility and constant production, silver stocks are not popularly held as a long-term investment, instead traders often seek to capitalize on the volatility of silver. Although the growing world-wide push towards clean energy may affect silver in ways not seen before.

How to buy silver stocks

You can buy and trade silver stocks on FOREX.com through CFDs. CFDs, which stands for contract for differences, allow you to speculate on the price of silver stocks without having to buy a single share and give you the option to go both long or short on these stocks. CFDs also incorporate leverage, meaning you can spread your capital much further than when you buy physical shares. Learn more about trading CFDs with FOREX.com.

FOREX.com offers spread betting and CFDs on popular silver stocks with spreads starting at 0.1%. Follow the steps below to get started.

  1. Create a trading account on FOREX.com, or log in to an existing account
  2. Choose which underlying silver market you want to trade
  3. Open your first position
  4. Monitor your trade using technical and fundamental analysis

Silver stocks and ETFs to go long or short

Here we look at some of the largest silver mining and streaming companies along with two significant ETFs to highlight differences between companies and what might attract investors. These companies represent some of the largest and most traded silver stocks and are highlighted as examples of silver mining and streaming stocks and ETFs.

Pan American Silver

  • Pan American Silver is one of the largest silver mining companies in the world with operations in Argentina, Bolivia, Canada, Mexico, and Peru. They also mine and sell gold, copper, lead, and zinc. Pan American Silver is traded on the NASDAQ and TXS under PAAS.

First Majestic Silver

  • First Majestic Silver is a Canadian mining company that operates most of its mines in Mexico. Unlike most other mining companies, a majority of First Majestic Silver’s revenue comes from silver, making it one of the purest plays on the metal. First Majestic Silver aims to be the world’s largest silver producer and can outperform silver’s spot price by expanding production while lowering costs. First Majestic Silver is traded on the NYSE under AG, the Frankfurt Stock Exchange (FSE) under FMV, and the TSX under FR.

Endeavor Silver

  • Endeavor Silver is a mid-tier mining company headquartered in Canada with three operating silver-gold mines in Mexico and several others in development in Mexico and Chile. Endeavor’s mining ratio is 60:40 gold-to-silver. Endeavor Silver is traded on the NYSE under EXK and the TSX under EDR.

Fortuna Silver Mines

  • Fortuna Silver Mines operate mines extracting silver, lead, and zinc in Peru; gold and silver in Mexico; and gold in Argentina. Fortuna Silver Mines is traded on the NYSE under FSM and the TSX under FVI.

Silver Miners ETF

  • The Silver Miners ETF is an exchange-traded fund weighted with over thirty silver mining and streaming companies. Some of the largest players included in the Silver Miners ETF include Wheaton Precious Metals, Pan American Silver, and First Majestic Silver. Silver Miners ETF is traded on the NYSE under SIL.

iShares Silver Trust

  • iShares Silver is an ETF that seeks to mimic the success of silver bullion, making it a popular choice for traders who seek to gain exposure to silver without buying the physical bullion themselves. The fund holds silver bars in both London and New York City and has an annual expense ratio of just 0.5%. iShares Silver Trust is traded on the NYSE under SLV.

Wheaton Precious Metals

  • Wheaton Precious Metals is a streaming company, providing mining companies with cash to operate in exchange for an opportunity to buy a percentage of the metals mined at a pre-approved price. As a streaming company Wheaten benefits from silver movements like mining companies while incurring fewer risks. They use their profits to reinvest in other streams and pay dividends. Wheaton Precious Metals is traded on the NYSE under WPM.

You can trade silver stocks with FOREX.com using spread bets or CFDs, with spreads from 0.1%. Follow these easy steps to start trading now.

  1. Open a FOREX.com account or log in if you’re a customer
  2. Search for the company you want to trade in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade

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