In this article, we will discuss the 10 Best Silver Mining Stocks to Buy Right Now.
Silver’s price saw significant appreciation in 2024, with the precious metal up by over 25% on a YTD basis. Market experts believe that the price appreciation stemmed from its expected high industrial demand, primarily from EV manufacturers. Furthermore, they believe that volatility in the dollar index and heightened geopolitical tensions hinted at a robust appetite for precious metals. Silver has now found its applicability in solar panels for renewable energy, in advanced healthcare, in electronics, and several other technologies. This wide adoption provided support to the precious metal in 2024.
Silver Institute mentioned that silver demand for solar power more than doubled over the previous five years, increasing from 74.9 million ounces in 2019 to an expected 232 million ounces by this year’s end.
Where Is Silver Headed?
Geopolitical concerns, including wars in Ukraine and the Middle East, together with China’s latest measures to fuel its economic recovery, supported much of the silver price rally in the recent past. As per industry experts, expectations of strong demand from the renewable energy sector and electronics should be able to offset the uncertainties surrounding economic and monetary policies in the near future.
Apart from its use as an investment, the precious metal has applications in industrial and medical industries, unlike gold. As per Techopedia, only 10% of gold output is used in industrial use, while more than 50% of silver production is used in industrial applications. As per Silver Institute, record industrial demand and recovery in jewelry and silverware are expected to lift demand to 121 billion ounces in 2024, while mine supply is expected to increase by just 1%. Notably, the exchange-traded products remain on track for their first annual inflows in 3 years. This is because silver’s investment appeal has increased off the back of rate-cut expectations, periods of dollar weakness, and falling yields.
The Silver Institute also highlighted that industrial demand should increase by 7% in 2024 to outpace 700Moz for the first time on record.
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Expectations of Increased Silver Production
The Silver Institute highlighted that, in 2024, global mined silver production is expected to rise by 1% YoY to 837Moz. This is expected to be supported by growth from Mexico, Chile, and the US, which should outpace lower output from Peru, Argentina, and China. The production from Mexico is expected to rise by 10Moz, which equates to 5% YoY, to 209Moz. This should stem from increased mill throughput and grade at Pan American Silver’s La Colorada operation, following the upgraded ventilation infrastructure. Also, the output is expected to be fueled by a recovery in production from Newmont’s Peñasquito mine.
In the release dated 12th November, The Silver Institute also mentioned that recycling in 2024 is projected to grow 5% to a 12-year high. This rise should come from price-sensitive sectors, like a spike in Western Silverware scrap. While industrial recycling also edges higher, the growth here is mainly associated with structural factors.
Amidst these trends, let us now have a look at the 10 Best Silver Mining Stocks to Buy Right Now.
Drills extracting gold from a gold mine, revealing the company’s gold mining operation.
Our Methodology
To list the 10 Best Silver Mining Stocks to Buy Right Now, we used a screener and sifted through several online rankings. After extracting the list of silver mining stocks, we mentioned their upside potential, as of November 18. Finally, the stocks were ranked in ascending order of their hedge fund sentiments, as of Q3 2024.
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10 Best Silver Mining Stocks to Buy Right Now
10) Endeavour Silver Corp. (NYSE:EXK)
Average Upside Potential: 18.7%
Number of Hedge Fund Holders: 9
Endeavour Silver Corp. (NYSE:EXK) is a mining company, which is focused on discovering and mining silver, with projects and operations in Mexico, Chile, and the US.
Industry experts remain optimistic about Endeavour Silver Corp. (NYSE:EXK)’s Terronera Mine project, which is expected to act as a principal growth catalyst. Overall project progress has reached 77% completion, with over $258 million of the project’s budget spent to date (as of Q3 2024). Notably, project commitments totaled $270 million, which equates to 99% of the $271 million capital budget, and remains on track for commissioning near the end of Q4 2024.
During Q3 2024, the Terronera project saw significant progress as the Upper Plant Platform nears completion. Also, surface mill and infrastructure construction reached 90%, further preparing for advancement into operations. Endeavour Silver Corp. (NYSE:EXK) mentioned that focus remains on the Lower Platform, where concrete work is well underway, and the Tailing Storage Facility, with underdrain embankment fill and pipe installation accelerating at a healthy pace.
As per Endeavour Silver Corp. (NYSE:EXK), the tailing filter area, which got turned over to the mechanical contractor, will allow focus on installing at least 1 tailing filter together with the concentrate filter through utilizing an extended work schedule in order to enable initial systems commissioning expected near Q4 2024 end.
As per Wall Street, the shares of Endeavour Silver Corp. (NYSE:EXK) have an average price target of $6.03.
9) Silvercorp Metals Inc. (NYSE:SVM)
Average Upside Potential: 32.2%
Number of Hedge Fund Holders: 10
Silvercorp Metals Inc. (NYSE:SVM) is engaged in the acquisition, exploration, development, and mining of mineral properties. It mainly explores silver, gold, lead, and zinc metals.
Wall Street analysts believe that the company’s growth outlook stems from its acquisition of Adventus Mining Corporation. This acquisition offers immediate asset, geographic, and metal diversification to Silvercorp Metals Inc. (NYSE:SVM). The pro-forma asset portfolio comprises exposure to China and Ecuador, increased gold exposure, and metals (silver, copper, lead, and zinc) which are critical for a low-carbon future.
The addition of the high-margin, advanced El Domo project is expected to significantly enhance Silvercorp Metals Inc. (NYSE:SVM)’s near-term production profile. Also, the key permits have been secured, which include the Environmental License and tailings storage approval. This transaction is accretive on a NAV per share and a Mineral Reserves and Mineral Resources basis. Industry experts believe that increased scale, significantly enhanced growth profile, and a presence in an emerging, mining-friendly jurisdiction should act as principal tailwinds.
The transaction is expected to create a new globally diversified green metals producer. It offers the opportunity for Silvercorp Metals Inc. (NYSE:SVM) to leverage its technical expertise and strong balance sheet to unlock value. What’s in for Silvercorp Metals Inc. (NYSE:SVM)’s shareholders? Industry experts believe that they will get exposure to Silvercorp’s high-quality and profitable silver mines and healthy balance sheet. Also, they will be able to retain participation in future upside from El Domo, Condor, and Adventus’ exploration portfolio.
Wall Street analysts gave an average price target of $5.69 on the shares of Silvercorp Metals Inc. (NYSE:SVM).
8) MAG Silver Corp. (NYSE:MAG)
Average Upside Potential: 14.85%
Number of Hedge Fund Holders: 11
MAG Silver Corp. (NYSE:MAG) is engaged in developing and exploring precious metal properties in Canada. It explores silver, gold, lead, copper, and zinc deposits.
Experts at Wall Street believe that MAG Silver Corp. (NYSE:MAG)’s long-term growth should stem from The Juanicipio mine, which is the company’s primary asset, and the positive outlook on the Silver market. Talking about the operating performance of the Juanicipio mine for 3 months ended September 30, 2024, a total of 331,194 tonnes of ore were mined. This demonstrates a rise of 11% as compared to Q3 2023. These increases in mined tonnages at Juanicipio stemmed from the operational ramp-up of the mine towards steady-state mining and milling targets. Moving forward, the experts believe that operational improvements are expected to be the key factor in the mine’s success.
With respect to the exploration updates on MAG Silver Corp. (NYSE:MAG)’s Juanicipio mine, the underground infill drilling continued in Q3 2024, mainly focused on upgrading mineralization in areas projected to be mined in the near to mid-term. During Q3 2024, 8,248 metres were drilled from underground. During Q3 2024, a total of 332,290 tonnes of ore were processed via Juanicipio plant. The 3% YoY rise was mainly because of the Juanicipio plant operating at nameplate per operating day during 2024.
The silver market continued to demonstrate resilience and potential for growth, which should favourably support MAG Silver Corp. (NYSE:MAG)’s prospects. Its focus on high-grade silver production places it well to capitalize on positive market trends. MAG Silver Corp. (NYSE:MAG) acquired the adjacent Goldstake property, demonstrating potential for exploration expansion. Wall Street believes that this move exhibits the company’s commitment to enhancing the resource base and extending the life of operations.
Analysts at HC Wainwright upped their price target on the shares of MAG Silver Corp. (NYSE:MAG) from $17.00 to $18.00, giving a “Buy” rating on 5th August.