When it comes to mining stocks, many investors have a focus on gold stocks. It seems as if traders believe there is more profit to be made with the precious metal. But this implies that investors are overlooking other types of mining stocks. Silver stocks have been performing extremely well in 2020. In fact, silver prices have increased by more than 50% since the start of the year. So, this metal is performing much better than gold is in 2020.
The economy and the pandemic have been affecting silver as well as many other industries. Production and sales slowed with the arrival of these two issues. When silver is being used more industrially, the price of silver stocks responds favorably.
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Silver is also an asset people can hold just like gold, rather than money. However, the recent pullback in precious metals is now a key focus for investors. Is this a minor correction or is the party over? While some bears will opt for the latter, a general consensus among Wall Street suggests the opposite. Regardless, as long as the dollar remains strong, precious metals are back to a simmer. So while this wild bull market for metals takes a pause, let’s look at 4 trending silver stocks that could be on your watch list.Top Silver Stocks To Watch: Walcott Resources Ltd.
The first company on this list of silver stocks is Walcott Resources Ltd. (CSE:WAL Stock Report) (OTC: WALRF). Walcott is a mining operations company that focuses on acquiring land, exploring, mining, and more. In 2020, Walcott has been actively developing its Tyr Project in Australia, expected to identify more than 4700 grams per ton of silver. Walcott additionally owns the Cobalt Hill Property, covering 1727.43 hectares. On September 11th, Walcott provided an update on its Cobalt Hill property.
The program will follow up on zones of known high-grade gold mineralization that occur at numerous locations around the project. It will also look towards the potential for even larger zones of lower grade gold mineralization on the property. The company has identified many other things it plans to do with the Cobalt Hill property in the full report.
The CEO of the company, Marshall Farris stated, “This program is expected to increase our understanding of the nature and controls of gold mineralization on the Cobalt Hill property, to identify and refine areas for follow-up work to further explore these and other areas of the property.”
It will be interesting to see how Walcott’s future advancements will affect the company. Also keep in mind the company’s Australian silver target too. Click here for more information on Walcott Resources.Top Silver Stocks To Watch: Pan American Silver Corp.
Next on this list of silver stocks to watch is Pan American Silver Corp. (PAAS Stock Report). Pan American is a mining company with focuses on the exploration, development, extraction, processing, refining, and reclamation of silver mines. The company additionally produces and sells gold, zinc, lead, and copper. It holds interest in the La Colorada, Dolores, Huaron, Morocoha, San Vincente, Manatial Espejo, Escobal, Shahuindo, La Arena, and Timmins mines.
It seems like PAAS stock has been rising exponentially in 2020. At the start of the year, it was at $23 a share on average. Now as of September 22nd, PAAS stock price has reached $33 a share on average. The company recently released its second quarter highlights for 2020.
The CEO, Michael Steinmann had this to say, “The global COVID-19 pandemic had a significant impact on Q2 results, with all our Latin American operations placed in care and maintenance mode for periods of time during the quarter. Except for our two polymetallic underground mines in Peru, all operations are now back in production under comprehensive health and safety protocols.”
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Revenue for Pan American was $249.5 million in the second quarter. Consolidated silver production of 2.8 million ounces and gold production of 96.6 thousand ounces are the result of coronavirus related closures. The company’s net income was $19.4 million for the quarter.Top Silver Stocks To Watch: First Majestic Silver Corp.
First Majestic Silver Corp. (AG Stock Report) has been another popular silver stock to watch this year. First Majestic primarily acquires, develops, and produces the precious metal that is silver. The company actively holds a 100% interest in the San Dimas Silver and Gold Mine, La Encantada Mine, and holds some interest in the Springpole project. On August 6th, the company decided to report its second quarter results for 2020.
This is where First Majestic achieved a 58% decrease in stock price due to being forced to limit its operations. It is a prime example of the COVID-19 outbreak having a bad impact on companies. The company in the meantime stockpiled its inventory of silver to sell during the third quarter of 2020, meaning that it will more than likely be much better than this second quarter.
The company has moved past the closures and is now able to mostly operate to its fullest ability. First Majestic put out an ESG and sustainability report that was positively forward looking for the mining company as well. That is why AG stock is on this list of silver stocks to watch in 2020.Top Silver Stocks To Watch: Fortuna Silver Mines Inc.
Fortune Silver Mines Inc. (FSM Stock Report) rounds out this list of silver stocks. This is a silver mining company that owns two mines located in both Peru and Mexico, as well as a few others. The company additionally purchased the Goldrock Mines for $129 million CAD back in 2016, but they are yet to open. FSM stock price has been able to go up in recent times due to the positive momentum caused by its second-quarter financial results that were released. These financial results were seemingly negative, but actually beat estimates.
It seems like Fortuna is attempting to make the best of 2020 despite seeing a 34% loss in sales during the second quarter. On September 3rd, the company announced that it has initiated its irrigation and ore leaching at its Lindero project located in Argentina which could provide good results. The first gold pour from this venture is expected at the start of October this year. FSM stock price has gone up by more than 75% in 2020, due to its ability to continue operations and silver prices going up. That is essentially why it could make your list of silver stocks to watch.