There are many things that are impacting the price of silver stocks in 2021. Early this year the metal saw some momentum as retail traders shifted focus towards the metal. After this quick jump silver pulled back and stayed around the same price for a few months. Now mining stocks are once again seeing some momentum in 2021.
So why is this happening? Well, the COVID-19 pandemic has dramatically slowed down in the United States. Cases of the virus are very low and nearly half of the population has received the vaccine. Because of this, silver is being used a lot more. Look at the industrial industry for example. This industry was hit hard during COVID because of closures and delays on projects. Well now as cases loosen, these companies can operate at a more efficient level.
Retail numbers are also growing once again as people return to normal life. Silver is used in many products such as electronics, vehicles, jewelry, and more. The industrial and retail performance is only going to get better as restrictions lessen in the U.S. There are some other things that can impact the performance of this metal. One of these is world news, such as increased demand or a shortage. Silver is not likely to have a shortage any time soon due to how common it is. Time will tell what will truly happen to this metal during this year. Will it continue to grow strong, or will it reach the end of its momentum and fall? Nobody can know for sure at the moment, but for now let’s look at three silver stocks that have shown higher performance in the market.Top Silver Stocks To Buy Or SellFirst Majestic Silver Corp. (NYSE: AG)
First Majestic Silver Corp. is a silver stock that acquires, explores for, develops, and produces products at mineral properties. The main product that it searches for is silver deposits. It owns various mines like the La Encantada mines, San Dimas, and Santa Elena in Canada and Mexico. So far in 2021, this silver stock has shown a lot of positive performance. So what has First Majestic been up to that is causing this good momentum?
In early May the company released its first quarter results for 2021. Its revenue of $100.5 million was 17% higher than the previous year. Its average realized silver price was up 56% from the first quarter of 2020. First Majestic’s mine operating earnings rose 33% year over year as well.
President and CEO Keith Neumeyer said, “Due to the high demand for physical coins and bullion, our online retail store generated $4.8 million in silver sales during the quarter, or approximately 5% of our $101 million in total quarterly revenues, representing a new record in its 13-year online history. Furthermore, due to the current demand, the Company is working with numerous mints and refiners to direct as much silver sales as it can through its online store as possible.” One month ago AG stock was at $14.20 a share on average. Now on June 9th, AG stock has reached $17.47 a share on average. Will you add this company to your list of silver stocks to watch?MAG Silver Corp. (NYSE: MAG)
MAG Silver Corp. is a mining company that will primarily acquire land, explore it, and develop mineral properties within. It searches for silver, gold, lead, and zinc deposits respectively. Currently the company holds a 44% interest in the Juanicipio project in Mexico. This Juanicipio project is a joint venture between Fresnillo plc and MAG. Let’s look at what is causing MAG Silver Corp. to increase in market value.
In mid-May MAG Silver Corp. reported its first quarter financial results for 2021. The results shown in this report are progress for the company. MAG Silver continues to be a great performer in 2021. Just one month before its results were released the company reported its production from Juanicipio.
President and CEO George Paspalas said, “We’ve now successfully milled approximately 108,000 tons of development material at the Fresnillo plant since early August of 2020 generating cash-flow to help offset capex, gaining valuable metallurgical understanding, and providing confidence for the high stope grades expected once full-scale mining production commences.” Will MAG make your silver stock watchlist?Alexco Resource Corp. (NYSE: AXU)
Alexco Resource Corp. is a silver stock that explores for minerals and develops mines and operational activities. Most of its operations take place in Yukon Territory, Canada. Alexco actively looks for silver, lead, zinc, and gold deposits. It holds interest in the Keno Hill Silver District project that has many deposits within, such as 725 quartz leases, 873 quartz claims, 24 mining claims, and more.
On June 3rd the company announced a C$25 million bought deal public offering. This will offer 7,143,000 common shares of the company at C$3.50 per share. The proceeds will be used to fund continuing development at Keno Hill and for general corporate and working capital purposes. AXU stock is down at the moment, but could start to perform well if mineral prices rise again. So will AXU make your list of silver stocks to watch?Silver Stocks In 2021
It can be stressful to invest in silver stocks when their price momentum is based on world events. But as reopening has continued in America, the metal has been able to perform better. Putting together an investment strategy can help a lot when placing your money into the metal. Looking at recent news, sector news, and world news can all help when investing. In addition to this, looking at a company’s volume can be useful as well. So which companies will make your silver stock watchlist?