Silver Wheaton Corp. (USA) (SLW), Pan American Silver Corp. (USA) (PAAS): Silver Investing for Beginners

In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver Corp. (USA) (NASDAQ:PAAS), for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic Silver Corp (NYSE:AG) reported strong growth in revenues and a small bump in profits, sending the stock higher since the announcement . First Majestic Silver Corp (NYSE:AG) reported increased cash costs and tightening margins, largely driven by lower silver prices . Each of these companies face pressure from increasing production cost and environmental concerns.

PAAS data by YCharts

One company that should be included in silver investing for beginners is Silver Wheaton Corp. (USA) (NYSE:SLW). Unlike the miners mentioned above, Silver Wheaton Corp. (USA) (NYSE:SLW) is a silver streaming company – meaning it buys the production of other miners at a set, pre-determined price. This allows it to be largely insulated from many of the risks that silver miners must address. Additionally, as a result of its existing contracts, Silver Wheaton Corp. (USA) (NYSE:SLW) currently claims the largest reserve of silver in the world at over 1 billion ounces . The company is able to maintain an operating margin over 70% and has strong longer-term prospects for those taking a multi-year view. Ultimately, Silver Wheaton Corp. (USA) (NYSE:SLW) is a great blend of other silver investing for beginners options and should be considered for this purpose, as well as many others.

The article Silver Investing for Beginners originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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