5 Silver Stocks For The Second Half Of 2011

By Investopedia Staff | June 28, 2011 AAA

During periods of crisis, investors often flee risky asset classes and invest in assets or commodities that they feel will hold value. Silver is a prime example.

Silver is relatively rare and it is respected across borders; therefore, unlike currencies, it is believed to hold its value over time. While silver is not as popular as gold as a store of value, it has signifcant usages in various industries. It is this industrial demand that have convinced some that silver may be stronger investment than gold in the long term. The question is, what's the best way to invest in it?
IN PICTURES: 10 Tips For The Successful Long-Term Investor

Investing in Silver
While collecting jewelry with a high silver content or silver coins is the method preferred by some, there are downsides to consider. For example, there is the issue of finding a safe place to store such merchandise. Finding a buyer for a particular piece may also be difficult. Plus, there is sometimes a very big markup on certain pieces.

But there is an alternative for investors who want to gain exposure to silver: the stock market. Check out these five simple silver stock plays.


Company/ETF Market Capitalization
Silver Wheaton Corp (NYSE:SLW) 11.16B
Silvercorp Metals Inc. (NYSE:SVM) 1.53B
Endeavour Silver Corp. (NYSE:EXK) 649.60M
iShares Silver Trust(NYSE:SLV) 10.49B
Pan American Silver Corp. (Nasdaq:PAAS) 3.16B

The Risks
The price of silver can fluctuate widely. In 2008, the price of silver had risen to about $21.44 an ounce, a huge increase given that just a couple of years prior it was trading around $11. But not too long after that spike, silver lost its luster, and the price floundered to $8.40. However, recently, silver has popped back up to $34.

Bottom Line
Investors tend to flock to precious metals (like silver) in times of market crisis. Widespread international acceptance and recognition of this circumstance makes it likely that this trend will continue in the future. Adding a little silver to your portfolio might help you mitigate risk; the five stocks presented here are a great starting point for your silver stock search. (For further reading, check out A Beginner's Guide To Precious Metals.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

comments powered by Disqus
Related Analysis
  1. India Remains An Emerging Market Bright Spot
    Stock Analysis

    India Remains An Emerging Market Bright Spot

  2. Still More Gains Ahead For Semiconductor Makers
    Stock Analysis

    Still More Gains Ahead For Semiconductor Makers

  3. Unconventional Drilling Still Has Room To Boom
    Stock Analysis

    Unconventional Drilling Still Has Room To Boom

  4. Finding An Alternative With Currency ETFs
    Stock Analysis

    Finding An Alternative With Currency ETFs

  5. Commodities: Has Their Time Come Again?
    Stock Analysis

    Commodities: Has Their Time Come Again?

Trading Center