10 Best Gold and Silver Stocks to Buy Amid Rising Inflation

Despite the fact that gold prices are rapidly dropping at present, especially due to the Federal Reserve’s latest policy comments and the strength of the dollar, precious metals and gold remain a lucrative entry point for long-term investors. Investors who are looking for viable hedges against inflation can make use of commodities and gold to achieve their goal, as mentioned by Katerina Simonetti, the senior Vice President at Morgan Stanley Private Wealth Management in Philadelphia. Gold thus exists as a good option for long-term investments rather than short-term investments. According to Simonetti, the aim should be to ensure good performance in the long run at lower risk levels when looking for a good hedge against inflation.

With the coronavirus pandemic came increasingly difficult challenges to be faced by nearly every industry in the world. But more than just industries taking hits, your average citizen has had to deal with the economic challenges thrown their way just as much. One of the worst of these challenges is inflation, which is on the rise yet again. According to the Bureau of Labor Statistics in their May CPI inflation report, prices have been climbing just as they were in the previous month. In May, the index for car and truck rentals rose by 12.1%, compared to the previous month’s 16.2% hike, while household furnishings and operations index rose by 1.3%, representing a monthly increase so large it became the first of its kind since January 1976. All in all, prices rose by as much as 5% year over year, representing an alarming growth in the CPI.

Typical goods like food and beverages, cars, and household furniture were not the only commodities to see a rise in prices since the advent of COVID-19 though. The economic recession caused by the pandemic also led to rising gold prices, according to S&P Global. In August 2020, gold prices crossed the $2,000 an ounce mark. Investors began stockpiling to secure their own wealth in the panic caused by the pandemic, leading to deficits in the supply of precious metals like gold and silver and subsequent price hikes like the one above. As reported by Reuters this January, the prices of gold and palladium rose by over 20% as well, and silver prices saw an even greater 47% hike. This increase can be attributed to silver’s dual role in being not only a precious metal but also a metal that can be used for industrial purposes.

With rising prices of these precious metals coupled with increasing market volatility thanks to the pandemic, investors are beginning to start eyeing gold and silver stocks more seriously. Silver has been outperforming gold with its greater price hikes while the price of gold has been falling from its $2,043 per ounce high of August 2020. Yet, the market volatility of today and the rising inflation witnessed from the Bureau of Labor Statistic’s reports and the Federal Reserves comments signaling rising expectations for inflation in 2021, bring the attention back to gold. According to CNBC, investors are currently observing gold. Traditionally a safe-haven stock, gold is considered the best place to invest in times of economic recession, while being ignored in times of stability.

As inflation rises, gold and silver mining companies like Newmont Corporation (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Wheaton Precious Metals Corp. (NYSE: WPM) and First Majestic Silver Corp. (NYSE: AG) are getting a lot of attention. We have thus compiled this list of the 10 best gold and silver stocks to buy now.

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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Without further ado, here are the 10 best gold and silver stocks to buy amid rising inflation. We took into account hedge fund sentiment, analysts’ comments, ratings, future growth potential and fundamentals while choosing these stocks.

Best Gold and Silver Stocks to Buy Amid Rising Inflation

10. First Majestic Silver Corp. (NYSE: AG)

Number of Hedge Fund Holders: 15 

First Majestic Silver Corp. (NYSE: AG) is a company focusing on the acquisition and exploration of mineral properties. The company primarily operates in silver and gold production in Mexico and holds 100% interest in the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine. It ranks 10th on our list of the best gold and silver stocks to buy amid rising inflation.

This May, First Majestic Silver Corp. (NYSE: AG) declared its quarterly dividend of $0.0045 per share, with a forward yield of 0.12%. The stock has gained 65% over the last 12 months.

By the end of the first quarter of 2021, 15 hedge funds out of the 866 tracked by Insider Monkey held stakes in First Majestic Silver Corp. (NYSE: AG). The total value of their stakes was roughly $54.7 million. This is compared to 12 hedge funds out of 887 in the previous quarter holding stakes valued at about $84.8 million.