Silver stocks and the price of silver experienced a boost last year that was not expected before the pandemic. After the pandemic arrived, silver stocks increased in value tremendously. You may be wondering what factors are hurting and helping silver stocks? Well, let’s start with the pandemic. The COVID pandemic is taking over the world still, with no end in sight. This is hurting the economy because of travel, restaurants, and pretty much everything is not operating as it should be. Investors often turn to metal assets when the value of the dollar is hurt. Let’s talk about the next things impacting silver stocks. That would be the $900 billion stimulus bill that was brought into effect recently. This bill will give Americans $600 stimulus checks and provide support to small businesses and vaccine distribution. When the government issues the stimulus, it can hurt the dollar.
This adversely helps the price of silver stocks and other related assets. It was recently announced that mortgage refinances increased by about 20%, increasing treasuries. This translated to rates and caused the value of the dollar to slip. As a result, on January 13th, silver stocks are showing high performance. This market can be highly volatile at the moment, which scares some investors away. But the truth is, there are still many great silver stocks to watch in 2021. It is important to take multiple things into account when investing in silver stocks. The first of which is sector news and world news. Volume is also important when investing in silver stocks, as sometimes it can indicate the direction in which a company is headed. Now let’s look at the top silver stocks to buy or sell for 2021.Top Silver Stocks To Buy Or Sell
- Hecla Mining Company (NYSE: HL)
- Fortuna Silver Mines (NYSE: FSM)
- Silvercorp Metals (NYSE: SVM)
- Great Panther Mining Limited (NYSE: GPL)
First up on this list of silver stocks is Hecla Mining Company. Hecla is a mining company that deals unrefined gold and silver bullion bars to traders. It also offers lead, zinc, and bulk concentrates, and carbon materials. Hecla owns many mines, including the Greens Creek mine, the San Sebastian mine, and the Casa Berardi mine, just to name a few. Last year, the company announced that it had increased its quarterly dividend by 50% and has enhanced its silver dividend. So clearly the company was seeing some positive performance last year. So what about in 2021?
On January 13th, the company announced its production and cash position from 2020. Its silver production went up 7% to 13.5 million ounces. Its gold production decreased overall, but its stock has gone up significantly in the last year. HL stock price has hovered around the $5.50-$6 range. This is much higher than the $3 a share it was at a year ago. The CEO and President of Hecla, Phillips S. Baker Jr said, Despite the challenges of operating during the pandemic, 2020 marked a year of solid operational performance with silver production significantly exceeding guidance,” said Hecla’s President and CEO, Phillips S. Baker, Jr. “Our U.S. silver production was 15% higher than the year before and more than 50% higher than 2018, strengthening our position as the United States largest silver producer. The strong performance allowed Hecla to reduce net debt, increase dividends, and double exploration expenditures while more than doubling last year’s cash position. At current prices, we could repeat these results in 2021.”Fortuna Silver Mines
Next up on this list of silver stocks is Fortuna Silver Mines Inc. Fortuna Silver Mines explores, extracts, and processes precious metals and base metal deposits. The company operates in many Latin American countries such as Peru, Mexico, Argentina, and more. Its main properties include the Caylloma mine, San Jose mine, and the Lindero gold project. In its last financial results, the company showed a very positive performance. So let’s see how its performance has been in 2021 so far.
Like many mining stocks, FSM stock price went up in the first week of 2021 and then went back down in the second week. But FSM stock price is actually higher than it was in December 2020. So this could potentially be a great silver stock to watch throughout 2021.Silvercorp Metals
The next silver stock to watch is Silvercorp Metals Inc. Silvercorp Metals is a silver company that acquires, explores, develops, and mines mineral properties located in China. The company will mostly search for silver, gold, lead, and zinc too. It holds an interest in the Ying silver-lead-zinc project and the GC silver-lead-zinc mine.[Read More] 4 Mining Stocks To Add To Your January Watch List
SVM stock price is moving with the price of precious metals at the moment. On January 5th, Silvercorp intersected a 1.58-meter interval grading 17.08 g/t gold, 301 g/t silver, and 18.66% lead in a new vein. This occurred at its HPG mine. SVM stock price is still down 3% regardless. That is caused by the moving prices of metals in the market at the moment, though.Great Panther Mining Limited
The last company on this list is Great Panther Mining Limited. This is a mining and exploration corporation based out of Canada. The company explores for gold, silver, lead, copper, and zinc ores at its mines. These mines include the Tucano gold mine in Brazil, two silver mines in Mexico, among others. The company recently had to suspend operations at its Topia mine but then reopened it on December 17th. So how has the company performed in 2021 so far?
Just like many other silver stocks, this one has performed similarly. It rose in the first week of 2021 and then fell back down in the second week. But GPL stock showed positive performance in 2020, so if mining stocks hold their ground this year, it will likely perform well again. But that is just speculation; for now, it is a silver stock to watch.