What Is the Outlook for Silver Miners in 2017?
Silver versus gold performance
Silver has slightly outperformed gold year-to-date (or YTD). While the SPDR Gold Shares ETF (GLD), which tracks gold prices, has gained 10.5% YTD, the iShares Silver Trust ETF (SLV), which tracks silver prices, gained 11.6% on April 14, 2017.
Precious metal miners with substantial exposure to silver have also performed well year-to-date. Silver is usually a levered play on gold prices. This leverage could work to the downside if gold prices come under prolonged pressure after the Fed’s rate hikes.
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Silver miners’ performance
The divergence between silver prices and silver miners’ stock prices continued due to company-specific factors and the leveraged nature of these companies. Of these companies, Pan American Silver (PAAS) has outperformed its peers, rising 18.8% through April 14, 2017.
For more on silver miners’ performances and its reasons, please read A Look at Silver Miners after Their 4Q16 Earnings Announcements.
In this series
Analysts’ recommendations and ratings are important market sentiment indicators for investors to study. Analyst ratings tell you how bullish or bearish analysts are on a particular company or industry. At the extreme, the sentiment could be an indicator of a change in direction going forward.
In this series, we’ll also look at Wall Street analysts’ recommendations and ratings for these precious metal miners. It’s important to note that analysts’ estimates usually lag behind price movements. We see upgrades when stocks have already risen. As for downgrades, they come when a company has already seen lower prices.