4 Best Silver Mining Stocks in 2024
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 other factors can affect a silver stock's share price, the price of silver is one of the biggest.
In this article, we explore the best silver mining stocks to watch for this year and how to invest with a competitive commission.
Table of Contents
4 Best Silver Mining Stocks
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 stocks:
- Fresnillo (FRES) – World's Biggest Silver Producer & Mexico’s Largest Gold Producer
- Glencore (GLEN) – Largest Multinational Commodity Trading & Mining Company
- Polymetal (POLY) - Tenth Largest Gold Producer & Fifth Largest Silver Producer Globally
- Newmont Mining (NEM) - World’s Largest Gold Mining Company & Fourth-Largest Silver Producer
The silver mining companies listed above represent some of the biggest silver 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 as we go through further down this article.
Silver Mining Stocks Research & Analysis
In this section, we go through the top four 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 for your investing portfolio.
1. Fresnillo – World's Biggest Silver Producer & Mexico’s Largest Gold Producer
Fresnillo (FRES) is a 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.
The silver mining company produces 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 mine.
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.
Glencore produces around 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.
3. 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. It produces around 18.8 Moz of silver and is still the largest silver producer in Russia as well as the fourth-largest gold producer.
4. 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. It produced around 27.8 Moz of silver last year, 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.
How to Invest in Top Silver Mining Stocks
With Admirals, you can trade and invest in numerous silver stocks, mining companies and exchange-traded funds from all around the world, with the following commissions:
- UK stocks and ETFs – 0.1% of trade value, 1 GBP minimum commission.
- US stocks and ETFs – From $0.02 per share, 1 USD minimum commission.
- France/Germany stocks and ETFs - 0.1% of trade value, 1 EUR minimum commission.
You can learn more about trading and investing commissions on the Admirals Contract Specification page. You can search for global stocks and ETFs from the MT5 web platform and invest in four steps:
- Open an account with Admirals.
- Click on Trade on one of your live or demo trading accounts to open the web platform.
- Search for your symbol at the top of the search window.
- Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level.
Pros & Cons of Investing in Silver Stocks
Silver is a commodity like gold and oil. The price of silver is extremely volatile as it is affected by supply and demand. The changes in supply and demand cause the price of silver to rise or fall. Since 2020, the price of silver has remained in a tight range between $18 and $30. It will take a significant change in supply and demand to break out of this range which will have an impact on the share price of individual silver stocks.
While silver is mostly known to be used in jewellery it is also a widely used metal in electric vehicles and solar panels. Therefore, silver is a crucial component in clean energy. This could lead to a higher demand for the metal in the future. However, the price of silver does not directly correlate to the share price of a silver mining company.
A mining company has many costs and regulatory issues to take into consideration. If the price of silver rises they can sell it for a higher price. But, if the mining companies operating costs have risen then this may negate the price increase. Tracking individual company earnings reports is also key to understanding the margins involved in the mining of silver.
Continue Reading:
- Best Shares to Buy
- Top 10 UK Shares to Watch
- Best Gold Mining Stocks
- How to Invest in Gold
- Best Commodity ETFs
FAQs on Silver Mining Stocks
What is the best silver mining stock to buy?
There are many different silver mining stocks listed on stock exchanges worldwide. The top four largest silver mining stocks are Fresnillo, Glencore, Polymetal and Newmont Mining.
Who is the biggest miner of silver?
The countries which produce the largest amount of silver include Mexico, China and Peru. The world's largest silver mining company is Fresnillo.
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