Gold prices have been rocketing higher of late, causing many folks, including everyday investors, to consider jumping into the precious metal waters. Indeed, there are many ways to bet on the price of gold, from physical bullion to gold ETFs that track the price of gold to the miners themselves. And, of course, there are the precious metal mining streamers for those looking for stability, upside potential, and a nice amount of passive income.
Though some may have concerns that gold has run a bit too much of late, making the asset overdue for a correction, I’d argue that the shiny yellow metal can continue higher as geopolitical issues and hot inflation continue to weigh on investors’ mentality. But it’s not just gold that can benefit as macro headwinds begin to weigh.
Don’t forget about silver, folks!
Silver, an often overlooked metal, has also been heating up in recent weeks. Though it’s riding on the strength of gold, I do think that the silver-focused miners may be able to offer next-level value for investors looking to play the continued run in the precious metals group.
Sure, I’m a fan of gold and have around 4% of my portfolio allocated to the asset as a hedge. However, I’m also starting to warm up to silver and its miners, especially at today’s modest valuations. As silver prices flirt with new heights, perhaps it’s worth considering some of the many Canadian silver miners to diversify that precious metal portfolio!
While I do view gold as the safer way to batten down the hatches, I do view silver as having its own utility, especially given its numerous applications as an industrial metal. In any case, between gold and silver, I think investors have to expose themselves to both going down the stretch.
In this piece, we’ll check out two miners that look to be worth the price of admission.
First Majestic Silver
First Majestic Silver (TSX:FR) is a pretty intriguing silver miner that’s been really heating up this year, with the stock up an impressive 30% year to date. Moving ahead, the nearly $3 billion miner could have legs as it looks to make a move toward its 2021 all-time highs. The stock’s still off around 55% from these heights. So, there’s still plenty of room to run as silver prices look to march higher alongside gold.
With good news surrounding the drilling of various properties, including San Dimas, Santa Elena, and Jerritt Canyon, I view FR stock as a very intriguing underdog that many precious metal investors may be sleeping on. With a 1.4 beta, though, shares are likelier to be a choppier ride than the TSX Index. So do expect added volatility versus the broader market.
Pan American Silver
Pan American Silver (TSX:PAAS) is another great silver mining play that’s been surging, now up more than 24% year to date. As the $9.6 billion firm looks to continue making the most of its high-quality drilling sites, I do view shares as having way more upside than silver prices themselves.
The stock also looks dirt cheap, with a generous dividend yield of 2.02% at the time of writing. Indeed, Pan American may be heating up, but like FR stock, it’s still not mirroring the explosive bullish moves of the commodity it mines. I think Mr. Market may need to make an upside correction at some point in the near future. And with a high 1.4 beta, expect some extra chop from the shares.
