We recently published a list of 10 Best Junior Silver Mining Stocks to Buy According to Analysts. In this article, we are going to take a look at where Royal Gold, Inc. (NASDAQ:RGLD) stands against other best junior silver mining stocks to buy according to analysts.
Silver not only plays a key role in the global industry, it is also considered an investment asset. Although gold is considered a top alternative investment, silver is much more significant due to its multifaceted usage. It is used for various purposes, including but not limited to solar panels, and electric vehicles. Silver’s position has strengthened even more in 2025 due to elevated industrial demand, economic uncertainty, and changes in monetary policies.
During the previous year, silver saw a steady increase in its price, going above $30 per ounce for the first time since 2011. Analysts are closely following the key resistance zones that could trigger breakouts looking at $37 and even $40 per ounce in bullish cases, according to Dukascopy. This increase is driven by multiple macroeconomic factors, including inflation, geopolitical instability, and a global financial easing cycle, making silver an attractive asset to hold. With a weakening U.S. dollar and falling interest rates, investors’ interest in non-yielding assets like silver has increased.
Furthermore, silver’s uses in the industry have multiplied, causing its demand to increase. It is projected that silver will reach a record high in 2025, as per the Silver Institute, with a demand of over 700 million ounces by the industry. A major portion of the demand can be attributed to solar panel production, where silver’s high conductivity grants it a unique place in photovoltaic cells. Moreover, the expansion of electric vehicles, artificial intelligence, as well as consumer electronics further solidified the demand for silver.
On the other hand, supply-related concerns are a growing issue. Consecutively, for the fifth year, the silver market is expected to be in deficit despite an expected 2% increase in production, as reported in Global Newswire. Top producers and companies are looking to meet the increasing demand. Further complications arise from worldwide trade tensions. With a new government in the U.S. and its aggressive tariff policies, fears of a new trade war loom. Although this creates risks, it also presents opportunities to those who understand the market dynamics of silver.
Methodology
To compile our list of the 10 Best Junior Silver Mining Stocks to Buy According to Analysts, we selected top junior mining companies with significant exposure to silver exploration and production. We prioritized companies with strong market capitalizations and evaluated hedge fund sentiment to ensure investor confidence in these stocks. To assess hedge fund interest, we looked into the hedge funds holding stakes in these stocks, as of Q4 2024, with data fetched from Insider Monkey’s extensive hedge fund database, which tracks over 1,000 hedge funds. Finally, we ranked the stocks based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A mine entrance, showcasing the precious metals and minerals that this company produces.
Royal Gold, Inc. (NASDAQ:RGLD)
Average Upside Potential: 14%
Number of Hedge Fund Holders: 42
Royal Gold, Inc. (NASDAQ:RGLD) is a metals streaming and royalty company with a diverse portfolio across the Americas, Africa, and Australia. The company derives its revenue by acquiring royalty and streaming interests in projects of gold, silver, and base metals. Hence, the company benefits from strong metal prices without the operational hazards attributed to mining.
The company recorded revenue of $719 million in 2024, which is a 19% increase compared to the previous year. Its operating cash flow also increased by 27% to $530 million. Royal Gold, Inc.’s (NASDAQ:RGLD) earnings touched $332 million, which is a 39% increase when compared to 2023. Silver makes up a sizable portion of its revenue, with the company receiving 478,900 ounces of silver through its streaming agreements, contributing significantly to its total metal sales. The company, by year-end, held around 338,400 ounces of silver, positioning it well for future revenue given strong silver prices.
However, Royal Gold, Inc. (NASDAQ:RGLD) faces challenges due to lower silver deliveries from its Pueblo Viejo stream. On the other hand, the company has maintained stable production numbers, with total gold equivalent ounces sold at 46,900 in Q4 2024. Royal Gold’s average realized silver price of $31.65 created a favorable environment for pricing. Revenue from silver remains key to the overall performance of the company as it continues to make use of its extensive streaming and royalty agreements.
Royal Gold, Inc. (NASDAQ:RGLD) remains focused on strategic growth and efficient capital allocation. This is reflected through paying off its entire debt by 2024 end and its healthy liquidity, which reached $1.2 billion. Its stock has increased by 12.32% year-to-date, which is a result of its strong fundamentals as well as strong prices of gold and silver. Analysts have forecasted a 14% upside, which is a source of investor confidence. The company continues to expand its portfolio and optimize its existing streams, making it a compelling investment in this sector.
Overall, RGLD ranks 6th on our list of best junior silver mining stocks to buy according to analysts. While we acknowledge the potential of RGLD as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RGLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.