Three silver investments to buy could entice investors as the precious metal’s price heads toward the sky.
The three silver investments to buy are on the ascent as investors seek refuge from crises that include high inflation, a possible recession, rising interest rates that contributed to several recent bank failures and Russia’s ongoing war in Ukraine that shows no sign of abating. Silver is among the precious metals that traditionally has served as a haven for investors seeking to preserve a portion of their assets during times of uncertainty.
Despite a 4% rise in silver prices since the start of 2023, further upside looks to be ahead later in 2023, according to a recent report from BofA Global Research. The investment firm forecasts that first-quarter 2023 earnings reports for precious metals companies will begin in late April with an outlook for relatively weak production numbers holding back the share prices of certain miners.
“Most companies in our coverage have guided to H2’23 (i.e., back-half weighted) production,” BofA wrote. “We do not expect negative guidance revisions — given the back-half weighted guides and that one quarter is normally too early to identify material deviations from plan. Metal prices were quite favorable in Q1’23, with gold averaging $1,892 per ounce (/oz), silver $22.55/oz and copper averaging $4.06 per pound (/lb), up 9%, 6%, and 11% respectively vs. the Q4’22 average prices.”
Three Silver Investments to Buy Feature Pan American Silver Corp.
Among the miners that are projected to show price appreciation will be silver producer Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS), of Vancouver, Canada, BofA reported. Tailwinds for PAAS and some other precious metals miners will increase if oil prices fall later in the year, since fuel is a key “input cost.”
Pan American Silver Corp. also switched the listing of its stock to the NYSE from NASDAQ on Tuesday, April 18, and is a favorite choice of Michelle Connell, who heads Dallas-based Portia Capital Management. Even though the company is coming off a “rough” last 12 months as it fell 35%, Connell said the stock looks to be ripe to rise.
The company had weakness in production and initially Wall Street did not respond positively to its acquisition of Yamana Gold (AUY) that was announced last year, Connell recalled. However, institutional investors, such as pension funds and endowments, have remained shareholders of the miner with potential benefits from the acquisition on the horizon, she added.
“These investors currently own 37% of the company’s stock,” Connell said.
In March, the company missed reaching the consensus earnings estimates of the analysts who cover it, but Pan American Silver’s recent closing of its acquisition of Yamana Gold will add four mines to PAAS’s current operations.
Michelle Connell leads Dallas-based Portia Capital Management.
Pan American Silver Corp. Shines as One of Three Silver Investments to Buy
“The merger will increase the company’s silver production by 63% and its gold production by 104%,” Connell said.
With that enhanced production capacity, Connell projects potential upside for PAAS during the next 12 to 18 months of 20-25%. With the market’s current volatility, Connell counseled against buying shares of the stock after a surge and suggested waiting for a pullback. She also suggested dollar-cost averaging as another strategy to purchase shares at different times to avoid the risk of purchasing at a short-term peak.
Despite the Canadian company’s move to the NYSE from NASDAQ, it also will remain listed on the Toronto Stock Exchange. Its management indicated that the “transformative transaction” with Yamana Gold will significantly increase the purchasing company’s scale for its silver and gold operations in Latin America.
“We believe the NYSE platform provides Pan American with the capital markets presence required to support our growing company,” said Michael Steinmann, president and CEO of Pan American.
John Tuttle, vice chairman of the NYSE Group, issued a statement saying, “We are thrilled to welcome Pan American Silver, a leading producer of precious metals in the Americas, to our NYSE community of world-class mining companies. We look forward to working with the Vancouver-based company for many years to come.”
Pan American has found a niche as a producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. The company also owns the Escobal mine in Guatemala that is currently not operating.
Chart courtesy of www.stockcharts.com
Three Silver Investments to Buy Include Hecla Mining
Hecla Mining Co. (NYSE: HL), of Coeur D’alene, Idaho, has rocketed 16.58% since it was recommended in the Fast Money Alert trading service in January. Led by Mark Skousen, PhD, and seasoned investor Jim Woods, Fast Money Alert recommended both Hecla and related call options that have soared since late 2022.
Mark Skousen co-heads Fast Money Alert.
In fourth-quarter 2022, both gold and silver stabilized and began trending sharply upward, lifting Hecla and other precious metals mining stocks. The Fast Money Alert partners opted to recommend Hecla, with the stock and the options both rising strongly. The stock and options broke out of a solidly bullish technical pattern as the stock soared 40% in the fourth quarter of 2022.
Chart courtesy of www.stockcharts.com
Hecla produces and explores silver, gold, lead and zinc. Its main silver mines include Idaho-based Lucky Friday and Greens Creek in Alaska. Hecla acquired 100% of Greens Creek from Rio Tinto in April 2008, after holding a 29% investment in it for 20 years.
“The acquisition doubled the company’s silver production, making it a leader in the silver mining industry,” Fast Money Alert wrote to its subscribers upon recommending Hecla.
Woods Weighs in on Three Silver Investments to Buy
Jim Woods not only teams up with Skousen in Fast Money Alert, but heads the Bullseye Stock Trader advisory service as well. Woods recommended a gold stock in the latter trading service recently, along with a related call option. The Bullseye Stock Trader service, offering recommendations of both stocks and options, had a 12.26% gain in the stock during its first two weeks as a pick in the portfolio.
Jim Woods heads Bullseye Stock Trader.
Sprott Physical Gold & Silver Trust Joins Three Silver Investments to Buy
Sprott Physical Gold & Silver Trust (CEF) is a recommendation of Bryan Perry, a seasoned Wall Street trader who also leads the high-income investment newsletter Cash Machine. CEF is a pick in the Cash Machine Special Situations portfolio that serves as a hedge for investors.
The Spott Physical Gold & Silver Trust recently reported that it holds approximately 1.424 million ounces of gold and 58.229 million ounces of silver. CEF provides investors with exposure to both precious metals at a time when demand is high, and access is becoming more difficult due to disruptions in the global mining supply chain.
The trust holds fully allocated and unencumbered precious metals, while investing exclusively in London Good Delivery (LGD) physical gold and silver bullion. At the end of February, CEF was 68.1% invested in gold and 31.9% in silver.
CEF unitholders can redeem their units for physical gold and silver bullion monthly, if they choose, subject to certain minimum requirements. The trust’s metals are held in custody by the Royal Canadian Mint, a Federal Crown Corporation of Canada. There is no levered financial institution between the unitholders and the trust’s physical bullion, nor risk of financial loss in the event of bankruptcy or nationalization, the company indicated.
Chart courtesy of www.stockcharts.com
Tax-Conscious Investors May Like Sprott Physical Gold & Silver Trust
For tax-conscious investors, the trust may appeal to certain non-corporate U.S. investors, the company reported. That advantage seems especially relevant with April 18 as the 2023 tax deadline in the United States this year. Gains realized on the sale of the trust’s units can be taxed at a capital gains rate of 15-20% versus the 28% collectibles rate applied to most precious metals ETFs, coins and bars, CEF commented.
Trust units can be purchased on any open trading day for the New York Stock Exchange or Toronto Stock Exchange, with no need for investors to handle, secure or protect the physical metal. Plus, trust units are highly liquid, with an average daily trading volume of nearly US$6 million, or C$8 million, and can be sold on any open trading day of the New York Stock Exchange or Toronto Stock Exchange, company officials said.
Air National Guardsman Arrested for Allegedly Leaking Classified Documents
A U.S. Air National Guardsman, Jack Teixeira, 21, was taken into custody last week for allegedly leaking U.S. Defense Department (DoD) documents that appeared on social media posts. The classified information offered a dim view of ending Russia’s ongoing war against Ukraine anytime soon.
Another indicator that the war could drag on is Russia’s successful test of an intercontinental ballistic missile (ICBM) on Tuesday, April 12, according to the Russian Ministry of Defense. Russian threatened further fallout from Finland joining of the North Atlantic Treaty Organization recently, more than doubling the alliance’s border with Russia. The move came after Russia’s invasion of neighboring Ukraine, as Finland opted to enhance its national defense.
Despite spurring Finland’s leaders to seek NATO membership to deter Russia’s aggression, the administration of Vladimir Putin warned of “retaliatory measures.” Russia now faces the prospect that NATO forces could be positioned near its border, if needed, to defend Finland.
“Finland is stronger and safer within the alliance, and the alliance is stronger and safer with Finland as its ally,” said U.S. Secretary of State Antony Blinken.
With a goal of avoiding a direct conflict with Russia, Finland President Sauli Niinistö said the country’s desire is to promote stability in Europe. Finland, along with Sweden, sought expedited NATO membership just weeks after Russia’s invasion of Ukraine on Feb. 24, 2022. In contrast to Finland, Sweden has been slowed in its progress to join NATO by dissent from Turkey.
In early March 2023, Sweden presented a draft law to its parliament aimed at outlawing support of or participation in terrorist organizations. Sweden’s leaders voiced hope such action would reduce Turkey’s opposition to it joining NATO.
CDC Shows Rising Vaccinations Against New Bivalent Variant of COVID-19
The U.S. Centers for Disease Control and Prevention (CDC) reported rising vaccination rates against COVID-19 and its bivalent variant. The CDC announced that 270,142,789 people, or 81.4% of the U.S. population, have received at least one dose of a COVID-19 vaccine, as of April 12. Those who have completed the primary COVID-19 doses totaled 230,467,642 of the U.S. population, or 69.4%, according to the CDC. Also on April 12, the United States had given a bivalent COVID-19 booster to 52,209,439 people who are age 18 and up, equaling 20.2% of America’s population. Medical studies have shown vaccinations help to keep people healthy and reduce the morbidity from contracting COVID, potentially boosting confidence of consumers to shop at stores, travel and otherwise spend money.
The three silver investments to buy offer hedges against inflation and catastrophes. Those same three silver investments to buy seem positioned to climb further later this year, according to BofA and others who follow the precious metals market closely.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. He is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for special pricing on multiple-book purchases.
