A Top Trio Of Silver Miners

Gold is the traditional safe haven in volatile markets. But, silver prices tend to rise even faster on a percentage basis — and so do silver stocks, notes Clif Droke, contributing editor to Cabot Wealth Daily.

Silver began its bull market around the same time in late 2008, but saw a far more impressive 400% gain in the ensuing three years before its run was over. Due to its lower price relative to gold, silver has always attracted a much bigger following among small investors, and, for that reason, has been called the “poor man’s gold.” Yet, in the last decade, institutional participation in the companies that mine silver has dramatically increased.

One important takeaway from past precious metal bull markets is that whenever gold demand is persistently high, silver sooner or later tends to outperform gold in percentage terms.

With that in mind, let’s take a look at some of the best-performing silver stocks ranked by relative performance. Each of these companies is positioned to benefit from a secular bull market in silver.

SilverCrest Metals (SILV) is a junior stage silver mining company that hasn’t yet begun production at its Las Chispas silver-gold project in Mexico. According to a company resource summary, however, it’s estimated that Las Chispas contains north of 511,000 ounces of gold and around 50 million ounces of silver.

Las Chispas has historically shown some fairly high ore grades, so this could be a worthwhile longer-term investment due to the potential for low mining costs and solid production rates. At this point, however, SILV is definitely more of a speculative play, and not something conservative investors should be heavily exposed to.

That said, based on its recent stock performance, investors evidently see some value in the company, so if you don’t mind the risk, owning a little SILV probably isn’t a bad idea in such a bullish environment for precious metals prices.

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