In this piece, we will take a look at the 13 best silver mining stocks to invest in now. If you want to skip our overview of the global silver industry, and how silver stocks fluctuate in response to broader macroeconomic trends, then you can take a look at the 5 Best Silver Mining Stocks To Invest In Now.
Just like gold, silver is both a financial asset and a commodity. While its prices are not as closely tracked or expensive as its yellowish counterpart, silver finds itself embedded as a store of value in the form of multiple products such as cutlery. Additionally, the boom in the global computing and electronics industry, which has generated demand for hundreds of thousands of gadgets has led to silver taking a crucial spot in the global industrial supply chain.
Consequently, silver stocks, which typically belong to those companies that either engage directly in silver mining or have stakes in mining properties also fluctuate in response to global industrial conditions. If the conditions are robust and major economies such as China continue to grow, then silver stocks also provide their investors with favorable results. Similarly, silver stocks, like all other stocks, are dependent on the performance of their underlying companies. Due to the unique nature of the global mining industries, where firms are often left to contend with crucial mining sites in countries with varying degrees of political stability.
For instance, when we analyze the 12 month share price performance of the silver stock First Majestic Silver Corp. (NYSE:AG), the graph is rife with sharp dips. One such dip came in March 2023 when the firm announced that it would suspend operations in its mine in Nevada due to high capital bleed and low profitability. Investors didn't react well to the news, and the shares tumbled in double digit percentages before recouping the losses over the next couple of days.
Fast forwarding to 2024, the stock soared by 3% the day after First Majestic Silver Corp. (NYSE:AG) reported its earnings report for the fourth quarter and full year 2023. The financial report saw the silver mining stock beat all odds to overcome analyst EPS pessimism. Its EPS for the fourth quarter sat at a loss of three cents a share, which was a cent shy of analyst estimates. Furthermore, while the firm's annual revenue dropped by 8% in the aftermath of the Nevada shutdown, the same shutdown helped it save costs and deliver a 37% mine operating earnings growth. Yet, despite the financial engineering, the impact of the previous three quarters was unavoidable on the balance sheet, and not only did the adjusted EPS for the quarter remain a loss, but First Majestic Silver Corp. (NYSE:AG)'s basis or non adjusted EPS that removes the impact of selective cash outlays remained in the red for the full year 2023.
Shifting gears to take a brief look at the dynamics of global silver prices before we move to the silver mining stocks to buy, like gold, the metal's price can move in response to U.S. monetary policy. Right now, stock market investors are on a keen lookout for any economic surprises that might compel the Federal Reserve to reduce interest rates. Should there be any surprises on this front, then silver, just like its heftier counterpart gold, might witness a price rise. Additionally, while silver is trading at roughly $23 an ounce right now, a report from Oxford Economics believes that the demand for silver can rise by as much as 46% by the end of 2033 when we consider industrial use cases and by as much as 34% when considering jewelry and other associated items. If capital conditions remain tight and silver miners are unable to meet this demand, then silver in itself might prove to be a solid investment.
So, as silver demand estimates remain optimistic, we decided to see which silver mining stocks hedge funds are buying. Some notable names are BHP Group Limited (NYSE:BHP), Wheaton Precious Metals Corp. (NYSE:WPM), and Newmont Corporation (NYSE:NEM). For more information for the silver mining industry, you can also check out 15 Biggest Silver Mining Companies in the World.
13 Best Silver Mining Stocks To Invest In Now
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Our Methodology
To make our list of the best silver mining stocks, we ranked all silver mining companies by the number of hedge funds that had bought their shares during Q4 2023 and picked out the top stocks.
For these best silver mining stocks, we have also mentioned hedge fund sentiment. Hedge funds' top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That's why we pay very close attention to this often-ignored indicator.
Seabridge Gold Inc. (NYSE:SA) is a Canadian metals mining company with operations in its home country and in the U.S. Its shares jumped by a whopping 19% in February 2024 after the firm announced that its exploration efforts in a Canadian gold site had yielded favorable results.
By the end of last year's fourth quarter, 13 out of the 933 hedge funds part of Insider Monkey's database had owned Seabridge Gold Inc. (NYSE:SA)'s shares. David Iben's Kopernik Global Investors was the firm's biggest hedge fund investor due to its $38 million stake.
Along with Wheaton Precious Metals Corp. (NYSE:WPM), BHP Group Limited (NYSE:BHP), and Newmont Corporation (NYSE:NEM), Seabridge Gold Inc. (NYSE:SA) is a silver mining stock that hedge funds are buying.
Osisko Gold Royalties Ltd (NYSE:OR) is a Canadian precious metal streaming company headquartered in Montreal. Despite the fact that the firm's latest earnings report saw it post a record C$247 million in revenue while it battled with wildfires, the shares are down year to date.
As of Q4 2023, 13 out of the 933 hedge funds profiled by Insider Monkey were the firm's shareholders. Osisko Gold Royalties Ltd (NYSE:OR)'s largest stakeholder in our database is Israel Englander's Millennium Management as it owns $85 million worth of shares.
Endeavour Silver Corp. (NYSE:EXK) is a pure play silver mining company with operations in North and South America. The firm has struggled on the financial front as of late since it has failed to beat analyst EPS estimates in all four of its latest quarters.
During 2023's December quarter, 14 out of the 933 hedge funds covered by Insider Monkey's research had invested in Endeavour Silver Corp. (NYSE:EXK). Israel Englander's Millennium Management was the biggest investor since it owned $9.1 million worth of shares.
MAG Silver Corp. (NYSE:MAG) is a diversified metals miner with operations in Mexico. When it comes to the average share price target of the best silver mining stocks on our list, it has the highest upside due to an average share price target of $17.76. This prices in a nice 105% upside.
Insider Monkey dug through 933 hedge fund portfolios for their fourth quarter of 2023 shareholdings and found that 14 had bought a stake in the firm. MAG Silver Corp. (NYSE:MAG)'s largest hedge fund shareholder is Jean-Marie Eveillard's First Eagle Investment Management as it owns 6.3 million shares that are worth $66.4 million.
Coeur Mining, Inc. (NYSE:CDE) is an American gold and silver mining company with operations in the U.S., Canada, and Mexico. Its fourth quarter and full year 2023 earnings results were a mixed bunch, as while Coeur Mining, Inc. (NYSE:CDE) grew revenue by 4.5% annually, its loss per share also grew by 2 cents.
As of December 2023 end, 14 out of the 933 hedge funds tracked by Insider Monkey had bought Coeur Mining, Inc. (NYSE:CDE)'s shares. Jean-Marie Eveillard's First Eagle Investment Management owned the biggest stake which was worth $6.9 million.
Hecla Mining Company (NYSE:HL) is a sizeable American metals mining company with access to lucrative properties in Alaska. The shares are rated Buy on average, while the average share price target is $5.74.
During 2023's final quarter, 14 out of the 933 hedge funds part of Insider Monkey's database had held a stake in the firm. Hecla Mining Company (NYSE:HL)'s largest investor among these is Dmitry Balyasny's Balyasny Asset Management due to its $20 million investment.
Fortuna Silver Mines Inc. (NYSE:FSM) is a Canadian gold and silver mining company with operations in Peru, Mexico, and other countries. It's one of the rare silver mining stocks on our list that has managed to beat analyst EPS estimates in two out of its four latest quarters, as several others have fared worse.
After digging through 933 hedge funds for their December quarter of 2023 shareholdings, Insider Monkey found that 18 were Fortuna Silver Mines Inc. (NYSE:FSM)'s shareholders. Ken Griffin's Citadel Investment Group owned the biggest stake which was worth $9.6 million.
Pan American Silver Corp. (NYSE:PAAS) is a Canadian metals mining firm headquartered in Vancouver, Canada. It's one of the strongest rated stocks on our list since the average share price target is Strong Buy. The average share price target of $20.58 prices in a 60% share price upside.
During Q4 2023, 22 out of the 933 hedge funds covered by Insider Monkey's research had invested in the firm. Out of these, the largest Pan American Silver Corp. (NYSE:PAAS) shareholder was David Greenspan's Slate Path Capital through its $85.8 million stake.
BHP Group Limited (NYSE:BHP), Pan American Silver Corp. (NYSE:PAAS), Wheaton Precious Metals Corp. (NYSE:WPM), and Newmont Corporation (NYSE:NEM) are some top hedge fund silver mining stock picks.
