Silver stocks with an upside in August

By Staff Writer / August 27, 2021 / Article Link

The price of mining stocks is quite volatile right now. There are several factors contributing to this. First, the COVID-19 pandemic and newly encountered Delta variant that poses a threat of an imminent lockdown. As the pandemic caused many material prices to skyrocket last year, many companies are performing well this year.

This means mining stocks are performing holding up well as demand for silver remains stable.

Some of the best silver stocks to keep an eye on this week include Coeur Mining Inc. ( NYSE: CDE ) MAG Silver Corp. ( NYSE: MAG ) Hecla Mining Company (NYSE: HL).

Analysts recommend holding the mining stock of Hecla Mining Company in your portfolio as this is a diversified mining company that discovers and produces precious metals. Some of its products include unrefined gold and silver bullion bars, lead, and zinc. Hecla released its second quarter 2021 results in August and showed a 31% increase in sales. Consecutively, its gross profit went up $25.2 million. Hecla’s American silver mines produce more than 40% of all the silver mined in the United States and with silver being important for the transformation to renewable energy, electric vehicles and 5G, Hecla’s growing silver production and low costs make it well-positioned for even better results in the future.

Coeur Mining Inc. (NYSE: CDE) is a mining stock that explores for, develops, and produces various mineral resources. Primarily, these consist of gold, silver, zinc, and lead. The company’s revenue and cash flow grew year over year and its gold production went up 2% quarter over quarter. The miner expects even stronger results in the second half of the year.

MAG Silver Corp. (NYSE: MAG) has interests in silver, gold, lead, and zinc deposits. MAG holds a 44% interest in the Juanicipio project in Mexico. This project is a 56% / 44% joint venture with Fresnillo plc. The latest drill results from Juanicipio foshowed high potential to add tonnes, grade and years to our mine life.

The reason these and other silver stocks remain popular in the market traces back to the start of 2020.  When the pandemic took over the world, silver shot to a new record high price last year. As a result, many silver stocks followed suit. Then, retail investors shifted their focus to silver stocks shortly after the GameStop craze took place. This caused silver stocks to receive a brief uptick and increase in popularity.

Subsequent inflation fears in the stock market and prolonged lockdowns around the world are two factors affecting the supply of metals like silver in the long term. As a result, demand is also being driven up. And this is good news to junior silver miners and mining stocks.

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