- While all eyes are on the next move by the U.S. Federal Reserve, one industry that appears undeterred is silver
- Last week, silver experienced a substantial bullish rally, marking a significant milestone by touching a 2.5-year high against every major currency
- Silver prices have climbed more than 90 per cent in the past five years and was valued at more than US$28/oz on Wednesday
- Silver North Resources Ltd. (TSXV:SNAG) stock last traded at $0.16 per share, Kootenay Silver Inc. (TSXV:KTN) stock last traded at C$1.15 per share and Pan American Silver Corp. (TSX:PAAS) stock last traded at C$26.21 per share
While all eyes are on the next move by the U.S. Federal Reserve, one industry that appears undeterred is silver
Silver, often referred to as the “poor man’s gold,” has recently captured the attention of investors with its remarkable surge. Last week, silver experienced a substantial bullish rally, marking a significant milestone by touching a 2.5-year high against every major currency.
Silver prices have climbed more than 90 per cent in the past five years and was valued at more than US$28/oz on Wednesday.
This surge is indicative of the current strength in the market of precious metals, which have shown resilience even with a perceived risk-on environment.
Investors need to understand the long relationship between silver and other asset classes. Contrary to popular belief, silver has historically shown a positive correlation with the stock market and other risky assets. While often considered a hedge against market downturns, silver’s movements are not always inversely related to equities.
Many analysts currently view silver as an attractive investment opportunity. However, investors should exercise caution, especially if they already hold positions in gold. Silver and gold have a strong positive correlation, meaning that movements in one often influence the other. Diversifying investments and managing overall risk exposure is prudent in such scenarios.
Outlook on the value of silver
The recent surge in silver prices reflects not only its intrinsic value but also investor sentiment and market dynamics. As global economic uncertainties persist, precious metals like silver are likely to remain in demand as a store of value and a hedge against inflation. On top of this, increasing industrial usage of silver in sectors like electronics, solar panels, and healthcare further bolsters its long-term value proposition.
Analyst David Morgan with Silver-Investor.com spoke to Commodity Culture recently and forecast this price rally to go beyond US$30/oz.
Exploring TSX Stocks in the silver industry
- Silver North Resources Ltd. (TSXV:SNAG)
- Operations: Silver North Resources is focused on exploring and developing silver properties in North America, with a particular emphasis on British Columbia and Yukon Territory
- Background: The company boasts a seasoned management team with extensive experience in mineral exploration and development
- Developments: In a recent interview with the Market Online’s Jocelyn Aspa, a company representative said Silver North Resources is preparing for a drill program at its Yukon property that will happen sometime in late spring or early summer 2024
- Stock performance: SNAG stock last traded at $0.16 per share and rose 60 per cent in the past month
- Kootenay Silver Inc. (TSXV:KTN)
- Operations: Kootenay Silver is engaged in the exploration and development of silver properties primarily in Mexico
- Background: With a portfolio of high-quality silver assets and a commitment to sustainable mining practices, Kootenay Silver is well-positioned for growth in the silver market
- Developments: Speaking with the Market Online’s Trevor Abes, the company detailed the upgraded mineral resource estimate at its La Cigarra project in Mexico with significant grade improvements
- Stock performance: KTN stock last traded at C$1.15 per share and rose 25 per cent in the past month
- Pan American Silver Corp. (TSX:PAAS)
- Operations: Pan American Silver is one of the world’s largest primary silver producers, with mines in Mexico, Peru, Argentina and Bolivia
- Background: With a diversified portfolio of mines and a strong track record of operational excellence, Pan American Silver offers stability and growth potential to investors
- Developments: The company recently reported high-grade drill results from its La Colorada Skarn project, in Zacatecas, Mexico
- Stock performance: PAAS stock last traded at C$25.11 per share and rose 39 per cent in the past month
Why should you invest in silver?
As silver continues to shine bright in the current market landscape, investors should conduct thorough due diligence before making investment decisions. While the recent momentum in silver prices presents attractive opportunities, it’s essential to evaluate individual risk profiles and investment objectives. By diversifying portfolios and staying informed about industry trends and company fundamentals, investors can navigate the silver market with confidence.
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