Silver Mining Stocks And Zombies…
Zombies From Silver And Silver Mining Stocks
What do zombies, counterfeiting, and precious metal prices all have in common?
A crazy question right… well stick with me.
They all have silver in common.
So far this year, our friend silver has been involved with some pretty interesting happenings.
Research published in Scientific Reports found some zombie-esque attributes in bacteria laced with a silver solution. You can read all about this silver zombie story.
On the coast of Laredo, silver found itself at the center of an import scheme. Apparently some savvy crooks used fake silver coins to dodge taxes on $800 million!
Silver is a hot commodity right now… and investors routinely debate what’s the right time to trade. But before we get to that… let’s take a closer look at silver.
Silver Mining Stocks Provide A Critical Product – SILVER
Everyone knows silver is used as currency. But, do you know about its numerous industry applications?
That’s right… Silver’s used in everything from mirrors to antibacterial agents. This impressive versatility and a limit on the physical supply of silver means it’s got a unique demand structure.
In fact, silver’s an incredibly useful material:
- Electronics – Silver’s primary use is industrial. Electronics account for a HUGE portion of this demand. Silver’s such a good electric conductor that it’s used in everything from light switches to TVs. Modern smartphones contain as much as 0.35 grams of silver.
- Healthcare – Silver has long been used to fight disease and infection. It helps prevents bacteria cells from forming chemical bonds – and staves off infection. It can be found in bandages, catheters, and more. The healthcare applications are endless.
- Currency – Silver has been used as physical currency for centuries. The US Mint and other government mints develop and sell silver collectables from time to time. Some investors use these coins as an alternative investment strategy…
But the critical question when it comes to silver is…
Are Silver Mining Stocks A Good Investment Right Now?
You’re hard pressed to find a more common question… and one harder to answer today.
Let me share with you a little secret.
Some silver stocks can jump in value… even if the precious metal is falling in price. Want proof?
Take a look at Fortuna Silver Mines $FSM stock last year.
If you’d have taken a position in late 2013 or early 2014, you would have caught a spectacular run. From early 2014 to the summer, the stock doubled in value.
What’s shocking is the stock doubled in value while the value of silver fell over the same time period.
Just look at this chart on silver – $SILVER!
As you can see, the value of silver was falling… yet the stock price increased.
The million dollar question is… WHY?
To put it simply… Company Performance.
If you look back in the news flow, you’ll uncover something very interesting… In early January 2014, the company announced a rapid increase in production. How rapid? Silver production was expected to grow 30% in the year!
That helped push the stock higher…
Then in February, the company made another big announcement. They released an analysis on inferred resources of silver showing a 26% jump!
These increases in production far outweighed the fall in value of the commodity itself.
So finding the right stock to trade is almost more important than picking the perfect value of the commodity!
With that said, I’m sure you’re wondering…
What Are Other Hot Silver Mining Penny Stocks?
I took a quick look at the market and these three stocks jumped out at me.
Now a word of caution… You can’t just run out and buy these hot silver mining stocks. You’ve got to take some time and do your research. Look at these companies closely. Analyze their financials… And study the management teams. Look at their prospects… BEFORE you make a move.
Now that you’ve been properly warned…
- Great Panther Silver $GPL – This enterprise has set out to become a trailblazing silver producer. In April 2015, it reported a 61% increase in its silver ounce production. The 52-week high for the stock is $1.49… today you can scoop it up for $0.59. Its current market cap is approximately $82M.
- Hecla Mining $HL – Hecla recently announced a merger with another major mining initiative, acquiring Revett Mining Company in a $20M stock deal. Despite missing Q1 street estimates, the stock trades for $3.18 just off the 52-week high of $3.54.
- Silvercorp $SVM – Silvercorp has international operations in China and Canada. Its operations yielded 3.86 million ounces of silver during FY2014. Later this week, the company is set to announce Fiscal 2015 results.
As you can see, silver mining stocks provide lots of excitement and opportunities for profit. And you don’t always need to have the price of silver climbing skyward… but that doesn’t hurt either!
Do you own silver stocks? Let me know which ones by leaving a comment on the website! I’d love to hear from you!
Good trading…
Brian Kent
Note: Brian Kent has been trading the markets for more than two decades and now writes and edits for PennyStockResearch.com. You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://pennystockresearch.com/free-reports/.
Category: Penny Stocks to Watch
