Special Report: Silver Is Soaring: 3 Silver Stocks to Invest in Today

In times of economic uncertainty, gold is often considered the ideal security blanket for investors.

Investors tend to overlook other precious metals in favor of gold because it's the most identifiable metal out there. It also tends to be the first thing to pop into people’s minds when they think about economic turmoil.

But only considering gold could be a massive mistake...

Other precious metals can hold just as much value to an investor as gold. Heck, some precious metals could even have more value because they offer investors a more diverse set of applications.

And if you’re looking at other precious metals, one of the first ones you should consider is silver.

Not only does silver behave similarly to gold when instability hits, but it can also be used in the industrials sector.

Over the last few years, silver has suffered in a dark bull market. But now, driven by a range of global factors, the metal is taking its first staggering steps out of that beaten-down space.

Don’t believe me? Let’s take a look...

3 Global Factors Propelling Silver in 2018

Although there's no denying that silver has had some hard times, it appears that those times are finally getting better.

What make us think this are three global factors that are slowly pushing the price up.

And the first of those factors is growth from the industrials sector...

1. Growth From the Industrials Sector

In 2018, analysts are expecting demand for silver from the industrials sector to boom. Why? Well, silver is known for its ability to both conduct electricity and be extremely malleable. And this makes it a favorite of the industrials sector, which produces a wide range of products.

Another important factor to take into consideration is how silver's demand is starting to outweigh its supply. Silver scrap supply has been on the decline for years and is estimated to decline even more in 2016.

That the supply of silver is decreasing while demand is steadily growing is a good indicator that silver prices are about to increase...

2. Fear of a Trade War

Outside of the industrials sector, a looming trade war could also have an impact on the price of silver and other precious metals.

In the early months of 2018, there were quiet murmurs of a trade war with China. This potential trade dispute has caused investors to clutch their wallets. And the resulting anxiety could be enough to drive them toward precious metals instead of stocks.

When uncertainties linger in the market, investors begin panicking. And that panic leads to buying and clinging on to silver and other safe haven assets. This lets investors feel assured that if the worst-case scenario happens, they'll be prepared and won't see significant financial losses...

3. Inflation and a Hedge Against a Sinking Currency

And then there's the final factor: inflation.

In 2018, inflation rates are expected to continue rising, creeping up by 2.6% by the close of the year. Many fear that the devaluing of the U.S. dollar (USD) could cause investors to flee to precious metals.

All three of the factors that we just mentioned have investors seeing silver in a new light.

It’s true that silver is the best of both worlds: It has the safety characteristics of a precious metal, and it has strong demand from many different industries.

That being said, we've decided to compile a list of three silver-mining stocks for your consideration...

1. Northern Dynasty Minerals Ltd. (NYSE: NAK)

Things are looking up for Northern Dynasty Minerals (NYSE: NAK).

For starters, the company owns an incredibly valuable asset: the Pebble Project.

The Pebble Project is arguably one of the largest mines in the world. And it's jam-packed with profit opportunities. Those opportunities include 57 billion pounds of copper, 71 million ounces of gold, and 345 oz. of silver.

That’s a lot of metal. And for a while, it seemed just out of the company's reach. Due to regulation, the Pebble Project was becoming a bit of a quandary for the company. But luckily for Northern Dynasty Minerals, the Environmental Protection Agency (EPA) currently favors deregulation. And that could fling open the doors to opportunity.

As soon as Northern Dynasty Minerals begins mining the Pebble Project, the company will start laying the foundation for a profitable future.

Currently, it's not expected that the mine will come on line until 2024, which makes this investment a bit of a wait.

But the massive potential behind the project is enough to entice many growth investors. For these investors, the Pebble Project is so promising that they have no problem settling down to wait it out.

With that said, this is still a speculative payout. And that means, as an investor, you should have a higher risk tolerance...

2. Pan American Silver Corp. (NASDAQ: PAAS)

Pan American Silver Corp. (NASDAQ: PAAS) is one of the best silver producers on the market.

The company plans to increase its silver production from its current 25 million oz. to 30 million oz.

This is great news when you consider that the price of silver looks like it’s on its way up. As the price of silver climes, Pan American’s continued silver production could turn the company into a money printer.

On a cautionary note, Pan American does have mines in both Bolivia and Argentina. And that presents a small degree of location risk. But investors shouldn’t be too alarmed.

Even though those are concerns, Pan American could also make up any loss with its five development projects. New projects are also on the horizon and could be purchased with the company’s cash flow.

Overall, Pan American is a strong company. Like the final company in this report, Hecla, it has its hands in quite a few pots. And it's created a strong market hold by mining many metals and having many projects.

In fourth-quarter 2017, Pan American produced 6.56 million oz. of silver, which marks a 4% increase year over year. The company also saw $226 million in revenue, which marked an increase of 18.6% year over year...

3. Hecla Mining Company (NYSE: HL)

Hecla Mining Company (NYSE: HL) is the leading low-cost silver producer. It operates silver mines in Alaska (Greens Creek), Idaho (Lucky Friday), and Mexico (San Sebastian). It's also a gold producer that operates a mine in Québec, Canada.

Over the last few years, Hecla has been slowly increasing its silver production. Its Greens Creek Mine operated an average of 2,391 tons per day in the third quarter. This was an all-time high for the mill since it's been in operation.

In its most recent earnings report, the company also reported that silver production was 9% higher than it had been in third-quarter 2016.

In addition to a higher volume of production, the silver grade produced by Hecla is also higher than ever. And beyond that, silver costs per ounce are remarkably low.

Hecla is positioned to make some major money on silver as the price of it increases. And that will allow investors to benefit without directly investing in the metal.

Hecla also recently purchased two large projects, both in Montana: Montanore and Rock Creek. These projects could boost company revenue in the future, especially if they go into production alongside increasing silver prices.

Outside of silver, Hecla’s general mining environment has been performing well. The company has a strong hold on both the zinc and lead markets.


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