The World Bank recently reported an ongoing commodity shock, with prices surging across the sector thanks in part to the Russian war in Ukraine. Still, contradictory action is happening due to renewed COVID-19 pandemic lockdowns in China, which is causing some commodity prices to wane, including silver.
China is the second-highest silver producer in the world after Mexico. In contrast, the U.S. is the ninth-highest silver producer with much of the industry centered in Alaska and Nevada. For investors looking to get in on the silver dip, these silver mining stocks may be the answer.
Hecla Mining Company (HL) is a good silver mining stock.
Hecla Mining Company (HL) is a big name in the silver industry. Despite the slump, HL stock is up 3.88 percent YTD as of April 29. The shares are more volatile in the long run, but a projected bull run could make the swing term profitable for investors.
Hecla has a $2.89 billion market capitalization and offers a 0.65 percent dividend yield. Analysts agree on a 38.99 percent upside in the next 12 months.
Fortuna Silver Mines Inc. (FSM) is attractive for investors.
Fortuna Silver Mines (FSM) is down 8.93 percent and could potentially be a good buy for investors looking to buy the dip.
FSM features a low PE ratio of 13.8, which means investors are getting a good deal on the company’s profit. FSM has a $1.038 billion market cap and analysts generally expect investors to see a 42.78 percent upside in the next year.
Honey Badger Silver Inc. (HBEIF) is a penny stock.
Small-cap company Honey Badger Silver trades on the OTC markets under the ticker symbol "HBEIF." The penny stock is more volatile than its big-name competitors but could produce profits for tuned-in traders seeking to capitalize on the next commodity surge. HBEIF is down 26.5 percent YTD.
MAG Silver Corp. (MAG) is down YTD.
MAG Silver (MAG) is up 2 percent on April 29 but is down 1.55 percent YTD. MAG recently acquired a gold exploration company called Gatling Exploration Inc. to diversify its assets beyond silver.
MAG maintains a $1.49 billion market cap. On average, analysts predict investors will see a 42.71 percent upside over the next year.
Two Silver mining ETFs offer focused diversification.
The iShares MSCI Global Silver and Metals Miners ETF (SLVP) trades on the BATS exchange and is down about 1.1 percent YTD. SLVP's top holdings include Pan American Silver Corp., Hecla Mining, Newmont, First Majestic Silver Corp., and Agnico Eagle Mines Ltd. The expense ratio is 0.39 percent.
The ETFMG Prime Junior Silver Miners ETF (SILJ) trades on the NYSE Arca exchange and is up about 2.54 percent YTD. SILJ's top holdings include First Majestic Silver Corp., Pan American Silver Corp., Yamana Gold Inc., Turquoise Hill Resource Ltd., and SSR Mining Inc. The expense ratio is 0.69 percent.
Investors should do their due diligence before deciding which silver stocks to pursue and how to implement a trading strategy. This sector is more volatile than the broad market and depends heavily on geopolitical factors.