Best Silver Mining Stocks to Watch Right Now

August 17, 2021 16:00 UTC
Reading time: 17 minutes

The demand for silver has rapidly increased in the last few years. The rise in green technologies and electric vehicles - where silver is a major component - are all factors that have analysts forecasting higher prices for the metal.  

This is why many investors are trying to find the best silver mining stocks to buy for the long term. While there are other factors that can affect a silver stocks share price, the price of silver is one of the biggest. Some stocks are already up more than 400% from the pandemic lows!  

In this article, we explore the best silver mining stocks to watch for this year, a silver mining stocks list you can get started with straight away and how to use Admirals’ premium analytical tools to find actionable trading and investing ideas.  

Best Silver Mining Stocks List 

If you’re looking for the best silver mining stocks to watch for this year, it makes sense to start with the biggest players in the silver mining industry. Below is a list of the top five silver mining stocks available to invest in through Admirals.  

  1. Fresnillo – World's Biggest Silver Producer & Mexico’s Largest Gold Producer 
  2. Glencore – Largest Multinational Commodity Trading & Mining Company 
  3. Newmont Mining - World’s Largest Gold Mining Company & Fourth-Largest Silver Producer 
  4. Vedanta Ltd – World's Leading Diversified Natural Resources Company 
  5. Polymetal - Tenth Largest Gold Producer & Fifth Largest Silver Producer Globally 

The silver mining companies listed above represent some of the biggest producers in the world. These companies are more likely to benefit from the increase in demand for silver. However, as they are companies with employees and regulatory oversight, they can still face challenges on the bottom line.  

More research needs to be done on these silver mining stocks. We go through more detailed research and analysis further down this article. Remember that investing is about winning and losing, so make sure you do your research or test out your theories on a demo trading account first! 

With the Admirals Invest.MT5 account, you can: 

  • Invest in stocks and ETFs (exchange traded funds) from 15 of the largest stock exchanges in the world.  
  • Open an account with just €1.  
  • Enjoy low commissions of just $0.02 per share on US stocks and 0.1% commission on UK stocks.  
  • Enjoy low minimum transaction costs of just $1, €1 or ÂŁ1! Perfect if you have a small account to start with.  
  • Access state of the art trading platforms and Premium Analytical tools which provide real-time actionable trading and investing ideas.  
  • Open a live or demo account to start with.  

Best Silver Mining Stocks to Watch - Research & Analysis 

In this section, we go through the top five best silver mining stocks list in more detail. This is a great starting point for your research in finding the best stocks to invest in. You can also use the Technical Insight Lookup indicator to help time when to invest in stocks. This can be found in the Premium Analytics section once you open a live or demo trading account.  

1. Fresnillo – World's Biggest Silver Producer & Mexico’s Largest Gold Producer 

Fresnillo (FRES) is precious metals mining company that is incorporated in the UK and listed on the London Stock Exchange but headquartered in Mexico. The company is the world’s largest producer of silver and is also Mexico’s largest gold producer.  

In 2020, Fresnillo produced 53.1 Moz (millions of ounces) of silver from its three gold investing and silver mines based in Mexico. Most of the silver is produced from the largest mine called the Fresnillo Mine or Mina Proaño - the world’s largest underground silver mines. 

Source: Admirals MetaTrader 5, FRES, Monthly - Data range: from 1 May 2008 to 17 Aug 2021, performed on 17 Aug 2021, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

The monthly price chart of Fresnillo's share price above shows a long-term range has developed between 570.00 and 2101.00. Historically, the price has turned at the upper horizontal resistance line and lower horizontal support line of the range.  

The most recent bounce from the horizontal support line occurred in April 2020 just when the coronavirus pandemic hit. This resulted in a near 160% surge higher in the price of silver and a more than 200% move higher in Fresnillo's share price.  

Currently, the price has since retraced as investors moved out of safe-haven asset classes like metals into the stock market which has been fuelled by loose monetary policy from central banks. However, with many analysts bemoaning the elevated levels in stocks, safe haven metals and the metal mining companies could come back into favour.  

2. Glencore – Largest Multinational Commodity Trading & Mining Company 

Glencore (GLEN) is a more well-known mining company around the world. This is due to the fact they are the largest multinational commodity trading and mining company in the world with production facilities around the world supplying oil, coal, gas, metals and minerals.  

The company has headquarters in Switzerland and the UK and at one point controlled 60% of the world’s zinc and 50% of the world’s copper. The company merged with Xstrata in 2013 and is the world’s largest integrated producer of commodities.  

In 2020, Glencore produced 32.8 Moz of silver making it the third-largest silver producer in the world. Interestingly, they were able to produce more silver in 2020 – the year of the pandemic – than they did in 2019, whereas companies like Fresnillo produced less over the same period.  

Source: Admirals MetaTrader 5, GLEN, Monthly - Data range: from 1 May 2011 to 17 Aug 2021, performed on 17 Aug 2021, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

The chart above shows the monthly share price action for Glencore. Currently, it shows that the price is trading in a descending triangle formation, depicted by the horizontal support line and descending resistance line.  

The recent bounce higher from the lower horizontal support line shows coincided with the overall bounce in the commodity sector. Now, the price is approaching the top end of the descending triangle price action pattern.  

3. Newmont Mining - World’s Largest Gold Mining Company & Fourth-Largest Silver Producer 

Newmont Mining (NEM) is the world’s largest gold mining company and fourth-largest silver producer. In 2020, the company produced 27.8 Moz of silver which was 75% more than in 2019. The company is based in the United States and owns gold investing mines in Colorado, Quebec, Mexico, Australia, Argentina and many other locations.  

Source: Admirals MetaTrader 5, NEM, Weekly - Data range: from 16 Jul 2017 to 17 Aug 2021, performed on 17 Aug 2021, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

Since the lows of the pandemic in 2020, Newmont’s share price has risen nearly 130%. The price peaked at around 75.00 which was a 30-year high. While the price has since retraced, the fact it is trading around 30-year highs is a bullish sign on the prospects of the company and the commodity sector. A bounce higher in both gold and silver markets could help lift the share price even further.   

4. Vedanta Ltd – World's Leading Diversified Natural Resources Company 

Vedanta Ltd (VEDL) is a mining company based in India but listed on the New York Stock Exchange. Its main operations include gold, aluminium and iron ore mines. However, the company also produces copper, zinc, lead, silver, pig iron and oil and gas making it highly diversified.  

In 2020, the Hindustan Zinc branch of Vedanta Ltd produced 23.7 Moz of silver which was 6% higher than the company’s silver output the year before.  

If the price can break through it could lead to higher prices – something most investment bank analysts are forecasting for the commodity market.  

Source: Admirals MetaTrader 5, VEDL, Monthly - Data range: from 1 Sep 2013 to 17 Aug 2021, performed on 17 Aug 2021, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

The monthly price chart of Vedanta’s share price above shows a long-term trading range that has developed between 21.36 and 3.52. This is highlighted by the two black horizontal lines which show the consolidation that has developed.  

Since the lows of the pandemic in 2020, Vedanta’s share price is already up nearly 440%. Interestingly, while other commodity shares have retraced after hitting their peak, Vedanta’s share price has kept going highlighting the importance of diversification in mining stocks.  

However, this silver mining stock may still have some room towards the upside as it is yet to hit the top of the trading range, which is around 20% away from current levels.  

5. Polymetal - Tenth Largest Gold Producer & Fifth Largest Silver Producer Globally 

Polymetal International (POLY) is a Russian precious metals mining company listed on the London Stock Exchange and Moscow Exchange. The company operates gold and silver mines in Russia, Kazakhstan and Armenia.  

In 2020, Polymetal produced 18.8 Moz of silver which was 13% less than they produced the year before. However, it is still the largest silver producer in Russia as well as the fourth-largest gold producer.  

Source: Admirals MetaTrader 5, POLY, Monthly - Data range: from 1 Oct 2011 to 17 Aug 2021, performed on 17 Aug 2021, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

From 2011 to 2019, Polymetal’s share price remained in a long-term trading range – like we have seen for most of the silver mining stocks so far. However, Polymetal’s share price managed to break through this range in 2020 and is now trading above the previous historical resistance line around 1187.24. 

If the price can stay above this level then it does bode well for higher prices in the long-term, especially if there is another rise in commodity prices.  

How to Invest in Top Silver Mining Stocks 

If you want to start investing in the best silver mining stocks then you first need to open a live trading account or FREE demo account. Once you’ve done that, you can follow the step by step process below on how to invest in the best silver mining stocks list from MetaTrader 5.  

1. Login to the Trader’s Room from the Admirals website. This will give you access to the client portal area where you can manage different trading and investing accounts, access deposit and withdrawals and premium analytical tools.  

2. Click the Trade button next to the account you want to trade on. This will open the MetaTrader 5 web platform so you can start investing without downloading anything.  

3. Choose from a range of instruments by right-clicking in the Market Watch window and selecting Symbols. Here, you can see a list of the more than 4,000+ instruments available to trade and invest in.  

4. To view a live price chart, drag the name of the instrument from the Market Watch window onto the chart. MetaTrader 5 provides you with a large range of technical analysis indicators and timeframes for your analysis.  

5. To place a trade, right-click on the chart, select Trading and then New Order. This trading ticket allows you to input your entry, stop loss, take profit levels and risk management size.  

Source: MetaTrader 5, 17 August 2021 

When to Invest in Silver Stocks? 

Now you know more about some of the best silver mining stocks to watch and how to invest in them, you may be asking yourself the question when is the best time to invest? Most investors do not try to time the market exactly as it’s very difficult to do and they usually have a longer-term outlook.  

However, many investors will choose to use a combination of technical analysis and fundamental analysis to help them time their investments. Fundamental analysis provides the narrative and technical analysis can provide the timing.  

This is why the Technical Insight Lookup indicator available for FREE in the Premium Analytics section of the Trader’s Room is so popular. The indicator’s algorithm scans thousands of instruments to find technical patterns of interest.  

Source: Premium Analytics, 17 August 2021

For example, after searching for Vedanta Ltd in the search box, the indicator has found 18 active technical events taking place on Vedanta’s share price. It explains the technical analysis event that is taking place and also provides a picture.  

This is a great resource to help understand when technical events are taking place across thousands of instruments. It also helps to educate and improve your own technical analysis skills.  

Access it for free today by clicking on the banner below: 

Why Invest in Silver Stocks with Admirals? 

✔️ Admirals is authorised and regulated by the FCA, CySEC, ASIC and others.  

✔️ Open an Invest.MT5 account to invest in real stocks and ETFs to build a long-term portfolio and a passive stream of income through dividend investing! 

✔️ Invest in stocks and ETFs from 15 of the largest stock exchanges in the world from just 0.02 USD per share on US stocks and 0.1% commission on UK stocks! 

✔️ Open a Trade.MT5 account and trade CFDs (contracts for difference) both long and short and potentially profit from rising and falling markets on currencies, commodities, indices and more commission-free with spreads starting from just 0.5 pips! 

✔️ Access state of the art Premium Analytics tools such as the Technical Insight Lookup indicator which finds actionable trading and investing ideas for you.  

Test ALL of these features and more by opening a FREE demo trading account! 

Click on the banner below to get started! ▼▼▼ 

INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”). Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  3. With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest. 
  4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on personal estimations. 
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. 
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.