5 Small-Cap Miners to Play the Silver Boom
Silver has been largely overlooked for decades. Largely regarded as gold’s “ugly cousin,” silver did not get the same respect as other precious metals. However, the winds of change are now seeing a shift of sentiment for silver.
To put it simply, the green revolution and the massive amount of U.S. dollars printed in the last twelve months are the primary factors driving silver higher. Now like a match to gasoline, Reddit traders want to turbo-charge the silver revolution.
Silver Bulls Eye Industrial Application, Swelling Money Supply, and Reddit Support
Over the past couple of years, silver has re-gained some respect not only as a precious metal but also for its industrial applications. With President Biden pushing through renewable energy upgrades and retrofits, silver’s domain just got a little bigger.
Silver is a critical component within solar panels. As solar projects have seen strong growth, the need for silver has also grown. However, with Biden’s plans to nearly double solar capacity over the next several years, a lot of silver will be needed to fill the demand for solar paneling.
While demand alone can push up the value of silver, it helps when the U.S. dollar is facing severe dilution. For commodities, the trend of the USD is extremely important. With an inverse relationship, a falling dollar is good news for investors holding commodities like silver.
Now just consider the fact that the U.S. money supply grew 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July 2020. This does not even consider the second coronavirus stimulus package passed in late 2020 and it certainly does not include President Biden’s proposed $1.9 trillion in additional stimulus. It all adds up to a falling dollar, rising inflation, and surging commodity prices.
The cherry-on-top of the silver bullish thesis (as if it wasn’t good enough already) is the newly-found support from the army of social media traders that were responsible for pushing Gamestop and AMC to their impossible heights. After a successful Gamestop campaign, Redditors led by WallStreetBets set their sights on the silver markets for their next short squeeze target.
Their involvement certainly caused panic-buying of physical silver over the weekend in anticipation of this week’s market open. Not only did silver dealers around the country run out of supply, but silver prices shot up to nearly $30 an ounce in the silver paper markets. In some places, physical silver was going at a premium of around $40 an ounce.
Whether you are a long-term silver bull or a short-term Reddit trader, here are five small-cap silver stocks that will continue to benefit from the increasing price of silver:
Avino Silver & Gold Mines, Ltd. (NYSE American: ASM)
Avino Silver & Gold Mines, Ltd. is a Vancouver, Canada-based company that focuses on the acquisition, exploration, and extraction of mineral properties across Canada. The company primarily mines for silver, gold, and copper. The company maintains interests in 42 mineral claims and four leased mineral claims. The claims cover thousands of hectares across Canada and Mexico.
Endeavour Silver Corp. (NYSE: EXK)
Endeavour Silver is described as a mid-tier precious metals mining company, which focuses on gold and silver deposits primarily located in Mexico and Chile. The company has interests in three silver and gold producing mines across Mexico.
Fortuna Silver Mines, Inc. (NYSE: FSM)
Fortuna Silver is a Latin American-focused metals mining company. The company has three key principal properties: Caylloma silver, lead, zinc mine in southern Peru; San Jose silver, gold mine in Mexico, and the Lindero gold project in Argentina.
MAG Silver Corp. (NYSE American: MAG)
MAG Silver is based out of Vancouver, Canada, and focuses on the acquisition, exploration, and development of mineral properties across the Americas. The company’s primary holding is a 44% interest in the Juanicipio project, which is located in the Zacatecas State, Mexico.
Silvercorp Metals, Inc. (NYSE American: SVM)
Silvercorp Metals is another Canadian company, which focuses on the acquisition, exploration, and development of mineral properties in China. The company maintains an interest in the Ying silver, lead, zinc project within the Ying Mining District in Henan Province, China. Silvercorp also maintains an interest in the GC silver, lead, zinc mine in Guangdong Province, China.
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