Silver stocks refer to the equity securities of companies that mine, process, or fabricate silver. They are considered a precious metal stock since silver is classified as a precious metal. Investors often like investing in silver stocks because they offer exposure to an asset class that may not be well represented in their portfolio. In addition, silver stocks also tend to be more volatile than other types of stocks. As a result, the volatility can provide opportunities for investors who are looking for capital appreciation. Notably, some of the more popular names among silver stocks are companies like; Wheaton Precious Metals (NYSE: WPM), iShares Silver Trust (NYSEARCA: SLV), and MAG Silver Corp (NYSEAMERICAN: MAG) just to name a few.
However, it is important to be aware of the risks associated with investing in silver stocks. For example, silver stocks may be more susceptible to economic downturns. As demand for silver tends to be driven by industrial activity. In addition, silver prices can be impacted by changes in currency values and global supply and demand. As with any investment decision, it is important to do your research before investing in silver stocks. With this in mind, here are two trending silver stocks to watch in the stock market now.
Silver Stocks To Watch In The Stock Market Today
Pan American Silver Corp (PAAS Stock)
Kicking off the list, Pan American Silver Corp (PAAS) is a Canadian-based precious metal mining company. The company has operations in Mexico, Peru, Bolivia, and Argentina. For a sense of scale, the company is currently the world’s fourth largest primary silver producer by market cap. Currently, PAAS has a market cap of $3.25 billion.
PAAS Recent Stock News
In August, Pan American Silver announced its financial results for the second quarter of 2022. Diving in, the company posted a loss of $0.03 per share, along with revenue for the quarter of $340.5 million. In addition, in the second quarter of 2022, Pan American Silver reported it produced 4.5 million ounces of silver.
Michael Steinmann, President, and CEO commented in the company’s release to shareholders, “Operations at our flagship asset, La Colorada, has improved significantly, with silver production rising to approximately 1.7 million ounces in Q2. However, Pan American’s Q2 results were markedly impacted by the underperformance at Dolores and our determination that recording an impairment of this asset was required. The remaining operations performed largely in line with our expectations, recovering well from the impact of the COVID-19 Omicron wave in the first quarter of 2022.“
PAAS Stock Chart
In 2022 so far, shares of Pan American Silver Corp stock are down 34.24% as of Tuesday’s late-afternoon trading session at $15.99 per share. At these price levels, PAAS stock is trading 47.67% from its 52-week high of $30.56 per share. Now, do you think now is a good time to add PAAS stock to your list of silver stocks to watch right now?
First Majestic Silver Corp (AG Stock)
Next up, First Majestic Silver Corp (AG Stock) is a Canadian mining company that specializes in the production of silver. For starters, First Majestic is the largest primary silver producer in Mexico and one of the leading silver companies in the world. First Majestic’s operations are located in the Mexican states of Jalisco, Durango, and Sinaloa. Its projects include La Encantada Silver Mine, La Parrilla Silver Mine & La Luz Silver Project.
AG Recent Stock News
Last month, the company announced its Q2 2022 financial results, as well as declared its quarterly dividend payment. Getting straight to it, First Majestic Silver posted a second-quarter 2022 loss of $0.02 per share and revenue of $159.4 million. This represents a 3% increase in revenue compared to the same period, in 2021. What’s more, the company reported total production of 7.7 million silver equivalent ounces. Moving along from that, the company’s Board of Directors declared a cash dividend payment of $0.0061 per common share for shareholders in Q2 2022.
Furthermore, Keith Neumeyer, President, and CEO at First Majestic Silver said this about the quarter, “Throughout the second quarter, the silver price continued to experience significant volatility, declining approximately 20% from $25 to $20.As a result of this weakness, the Company refocused and successfully reduced its 2022 capital investments without impacting its strong growth in projected production. In Mexico, our three operations generated healthy profit margins as approximately 80% of our total production came in at a low AISC cost of $15.34 per ounce.“
AG Stock Chart
So far this year, AG stock has dropped by 30% as of Tuesday’s power hour trading session. The stock is currently trading at $7.61 per share. Currently, First Majestic Silver is trading 48.12% from its 52-week high of $14.67 per share. With all that being said, could now be a good time to buy AG stock at these price levels?