Precious metals, silver and gold have always been attractive assets for numerous investors since the dawn of time. The white precious metal, silver is featured with hybrid characteristics like low price and its use in a number of industrial applications.
While silver can be invested in as a physical commodity, investors can choose other investment options that can grow and also provide income like silver stocks. Here are some insights on silver streaming, silver mining stocks, and silver exchange-traded funds.
Silver Mining Stocks
Silver mining stocks have a facet of correlation with silver prices. However, investors need to be aware of the risks that miners face. You must be aware that even if the silver prices are strong, the mining operations can still hit a stock hard. In the case, a specific company’s mining assets are not as valuable as predicted then there could be a fall in the share prices. Meanwhile, the large silver players like Pan American Silver and Hecla Mining have shown strong results recently.
Silver Streaming companies
Streaming companies offer exposure to silver prices even though they don’t engage in mining operations. The companies offer financing opportunities to miners and extend rights to purchase the mine’s silver production at a certain percentage at discounted rates. Companies like Wheaton Precious Metals have been the traditional leaders in the silver streaming industry.
Silver Mining ETFs
Silver mining ETF reportedly gives you a broad-based exposure to the industry, as exchange-traded funds will give you exposure to a wide range of stocks in a one-stop shopping format. The Global X Silver Miners ETF has reportedly 30 different stocks that are related to the silver industry, which is inclusive of Hecla, Pan American, and Wheaton.
The three methods of investing in the white precious metal can help you build your silver prospects.