We recently published a list of 10 Best Gold Penny Stocks to Buy Now. In this article, we are going to take a look at where Silvercorp Metals Inc. (NYSE:SVM) stands against other best gold penny stocks to buy now.
The global precious metals market is influenced by economic uncertainty, inflation, and shifting supply and demand patterns. The Business Research Company projects that the global metals market will grow at a CAGR of 5.9% through 2025. The mining sector is expanding at a CAGR of 6.2%, outpacing the broader metals market, and is expected to reach $2,401.85 billion.
Gold prices set new records in 2025, with Reuters reporting spot gold at $2,936.38 per ounce on March 3 and U.S. gold futures at $2,956.10. Central banks are stockpiling gold, which is driving up demand at record rates. Furthermore, investors seek gold as a safe haven during periods of inflation. S&P Global reports that gold futures grew by 34.6% year-over-year as of March 7, 2025, outpacing broader market indices. These trends are reshaping the gold market’s role in finance.
Supply and demand patterns are also shifting as gold now flows from Asian hubs such as Dubai and Hong Kong to the U.S., driven by higher premiums in U.S. futures markets and fears of import tariffs. U.S. Comex gold inventories have jumped 80% since late 2024, and investors are responding to better pricing and arbitrage opportunities.
Meanwhile, silver prices have also surged, reaching $30 per ounce in 2024, the highest since 2011. This increase was driven by inflation, geopolitical instability, and a weaker U.S. dollar. The Silver Institute expects the total silver demand to reach 1.20 billion ounces in 2025 while fabrication demand will exceed 700 million ounces for the first time. Additionally, silver recycling is expected to rise 5% to over 200 million ounces, the highest since 2012.
Platinum supply remains tight, with global production forecast to rise marginally by 0.76% in 2025, reaching 7.32 million ounces, leaving a supply gap of 539,000 ounces. Refined platinum production is expected to fall by 1%, reaching 5.55 million ounces versus 5.63 million in 2024. South Africa’s declining output worsens this shortfall.
Despite these obstacles, technological advances offer some hope. AI-driven exploration has cut mine development time from 16 years to nine. According to KPMG Mining Outlook 2024, geophysical data analysis now takes weeks instead of years. New refining technologies like bioleaching and cyanide-free processing improve efficiency and sustainability, ensuring more secure long-term precious metal supplies.
Our Methodology
To compile a list of the 10 Best Gold Penny Stocks to Buy Now, we first sifted through ETFs and stock screener to gather the top mining stocks under $5. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1,000 elite hedge funds.
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 modern mining truck, winding its way through a large open pit mining operation.
Silvercorp Metals Inc. (NYSE:SVM)
Number of Hedge Fund Holders: 14
Silvercorp Metals Inc. (NYSE:SVM) is a prominent silver mining company with its main operations in China, where the Ying Mine serves as its core operation. The company produces silver, gold, lead, and zinc, focusing on growth and boosting production. Recent achievements show Silvercorp’s robust performance, with record financial results and major strides in expanding operations.
For the third quarter ending December 31, 2024, Silvercorp Metals Inc. (NYSE:SVM) posted strong results with a record $84 million in revenue, up 43% from the previous year. The company also achieved an operating cash flow of $45 million, a 90% jump year-over-year. Silver production increased 16%, reaching 1.9 million ounces. This helped the company generate a net income of $26 million, more than double the previous year’s figures, driven by higher production and metal prices. Although a small drop in zinc sales slightly reduced gains, performance stayed strong overall.
Silvercorp’s success stemmed largely from the Ying Mine expansion. The company upgraded its mill, raising daily capacity from 2,500 to 4,000 tons. Silvercorp Metals Inc. (NYSE:SVM) also finished Phase 1 of a tailings storage facility and obtained permits for its Kuanping satellite project. These advancements along with strategic investments like the El Domo Copper-Gold project in Ecuador show the company’s dedication to growing its reach and building on its success.
Silvercorp Metals Inc. (NYSE:SVM) plans to produce 6.7 to 7.2 million ounces of silver in the fiscal year 2025, supported by investments in existing operations and growth ventures. The company expects ongoing production growth from mill expansions and project development despite challenges from a weaker zinc market. With strong finances, a focus on cost control, and strategic asset investments, SVM is well-positioned to capitalize on rising metal prices and maintain its position as one of the best penny stocks.
Overall, SVM ranks 8th on our list of best gold penny stocks to buy now. While we acknowledge the potential of SVM, 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 SVM 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.
