Silver stocks: top stocks to follow & FAQs about it

In a world of economic uncertainty and fluctuating markets, investors often seek stable havens to protect their wealth. That's where commodities like silver come into play. This precious metal has stood the test of time as a store of value and a hedge against inflation. But the allure of silver goes beyond its role in combating inflation – it's also driven by its scarcity. But while many people are familiar with physical silver, few are aware of the potential offered by silver stocks, ETFs, and other silver-related trading options. Keep on reading to discover more on the hidden opportunities that lie within silver.

Silver vs Silver stocks

Silver and silver stocks are two different investment options within the realm of the silver market.

Silver refers to the physical metal itself, which is a globally recognized precious metal that has been used for centuries as a store of value, currency, and industrial resource. Investors who choose to invest in silver typically purchase physical silver bars or coins. The value of silver is influenced by factors such as supply and demand dynamics, economic conditions, and inflationary pressures.

On the other hand, silver stocks refer to shares of companies that are involved in the exploration, mining, refining, or distribution of silver. Investing in silver stocks allows investors to gain exposure to the silver market through equities. The value of silver stocks is influenced not only by the price of silver but also by the financial performance and prospects of the underlying companies.

While investing in physical silver provides direct ownership of the metal, investing in silver stocks offers the potential for capital appreciation and dividends, but also carries additional risks associated with individual companies and the stock market as a whole. Both options have their own advantages and considerations, and investors should carefully evaluate their investment goals and risk tolerance before choosing between silver and silver stocks.

Silver stocks to consider

1. Newmont Corp. (NEM.US): Newmont Corp. is a leading gold and silver mining company based in the United States. It is involved in the exploration, acquisition, and production of precious metals. With a current market cap of $30.57 billion as of November 3, 2023, it is a significant player in the global mining industry.
2. First Majestic Silver Corp. (AG.US): First Majestic Silver Corp. is a Canadian mining company that specialises in the exploration, development, and production of silver. With a current market cap of 1.87 billion CAD as of November 3, 2023, it is one of the prominent players in the silver industry.
3. Hecla Mining (HL.US): Hecla Mining is a U.S.-based company engaged in silver and gold mining. They have operations in North America and specialise in the exploration, development, and production of precious metals. With a current market cap of 2.62 billion USD as of November 3, 2023, Hecla Mining is a notable player in the silver market.

Other Silver related trading

Other silver-related trading options include ETFs (Exchange-Traded Funds) and CFDs (Contract for Differences). ETFs are investment funds that track the price of silver, providing a convenient way to invest in silver without owning physical metal. CFDs, on the other hand, allow traders to speculate on the price movements of silver without owning the underlying asset. Skilling, for instance, offers a platform where traders can access and trade silver ETFs in the form of CFDs, taking advantage of the potential opportunities in the silver market.

FAQs

What factors influence the price of silver?

The price of silver is influenced by a variety of factors, including supply and demand dynamics, inflation, investor sentiment, geopolitical events, and inflationary pressures.

What are the advantages of investing in silver stocks over physical silver?

Investing in silver stocks offers the potential for capital appreciation and dividends, allows for diversification across multiple companies, and provides exposure to the broader performance of the stock market.

Are silver stocks riskier than physical silver?

Investing in silver stocks carries additional risks compared to physical silver. Stock prices may be influenced by factors specific to individual companies, such as financial performance, management decisions, and industry trends. Additionally, stock markets can be volatile.

How can I trade in silver ETFs and CFDs on Skilling?

On Skilling, you can access silver ETFs and CFDs by opening an account and navigating to the trading platform. From there, you can search for the desired silver-related instruments and execute trades based on your trading strategy.

Are silver ETFs and CFDs suitable for short-term trading?

Yes, silver ETFs and CFDs could be suitable for short-term trading as they allow for taking advantage of price movements without the need for owning physical silver. However, it's essential to carefully consider risks and employ appropriate risk management strategies.

Past performance does not guarantee or predict future performance. This article is offered for general information and does not constitute investment advice. Please be informed that currently, Skilling is only offering CFDs.