Many silver stocks looked beaten up in 2017, either near a bottom or struggling to overcome a resistance price. Most of these stocks remain at prices below their 50-day moving averages, and this is usually a bearish sign. We found three silver stocks that are currently at or near support levels. These stocks could rebound off support, but the wise investor will put them on a watch list to see how they perform before buying.
Silver companies are dependent to some extent on the yield on bank CDs or Treasury bonds. As long as those instruments pay low interest rates, metals in general – and silver in particular – will remain attractive. Expectations that the Federal Reserve will continue to raise interest rates could be an overhang on the silver market for the remainder of 2018, although there is a chance that impending rate hikes have already been priced into silver-related stocks. Let's look at three top silver stocks and their prospects for the remainder of the year. All figures are current as of Sept. 16, 2018. (To learn more, check out: A Silver Primer.)
Northern Dynasty Minerals Ltd. (NAK)
This developer of mineral properties is based in Vancouver, Canada. Northern Dynasty shares entered an upward trend in October 2016 but saw a sharp drop in February 2017. The stock has struggled to post significant gains since then, and it ticked downward along with the broader market into February 2018. The stock has continued to move downward over the past several months, reaching current levels of around $0.53 per share, and it will need to break upward out of its base to prevent further losses. Despite continued resistance to the company's Pebble Mine project in Alaska on environmental grounds, Northern Dynasty's leadership team remains committed to turning around the company's recent struggles. (For more, see: The World's Top 5 Silver Mining Companies.)
- Average Volume: 759,493
- Market Cap: $163.113 million
- P/E Ratio (TTM): N/A
- EPS (TTM): -$0.03
- Dividend and Yield: N/A (N/A)
Great Panther Silver Limited (GPL)
Great Panther mines properties in Mexico. Although it is a silver miner, it also mines gold, lead and zinc. The original company that became Great Panther Silver began in 1965, so this company offers stability simply for its longevity. As of this writing, the stock is trading at around $0.83 per share, having risen to a high of over $1.40 in January before turning downward with volatile price action. The company reported weather-related production shortfalls for the second quarter of 2018 but still anticipates reaching its production targets for the full year. Great Panther is currently assessing the prospects of its Coricancha mine in Peru, and if the results are positive enough to restart activities there, it could significantly boost the company's production levels. (See also: The Best Way to Buy Silver.)
- Average Volume: 376,068
- Market Cap: $142.33 million
- P/E Ratio (TTM): N/A
- EPS (TTM): -$0.03
- Dividend and Yield: N/A (N/A)
Pan American Silver Corp. (PAAS)
Pan American Silver focuses its effort on mines in Peru, Mexico, Argentina and Bolivia. This is not a pure silver play, because the company also mines gold, zinc, lead and copper. The company dates back to 1979. The chart on Pan American Silver stock shows that it has been seeing some volatility since its gains in March 2017. The stock broke below support levels of $15.00 in November and December 2017, and after posting 2018 highs above $18 in July, it has suffered declines over the past few months along with tumbling silver prices, reaching current levels of $14.48. (For more, see: Pan American, Brixton Metals Ink Asset Purchase and Sale Deal.)
- Average Volume: 1,133,041
- Market Cap: $2.218 billion
- P/E Ratio (TTM): 14.93
- EPS (TTM): $0.97
- Dividend and Yield: $0.14 (0.97%)
The Bottom Line
It is difficult to predict the direction that silver prices will move through the remainder of the year. But even when prices for the metal are on the rise, this does not mean that all silver miners are well managed or that investors are buying them. The three silver stocks on this list show some promise, but they are currently suffering. It is important to note that two of these stocks – Northern Dynasty and Great Panther – trade below $1 per share. A stock with a price this low can have greater volatility than a higher-priced stock like Pan American. (For additional reading, check out: Volatility's Impact on Market Returns.)
