Strategies to maximize profits from rising silver prices

Silver has made an impressive rally, defying expectations amid a buoyant economic backdrop and upbeat market sentiments. Its recent rally shows an upward trajectory, with silver futures currently trading at $28.09 an ounce, marking an impressive 17% increase year-to-date from the starting point of $23.95.

Several factors contribute to silver’s remarkable rise. In addition to geopolitical uncertainties such as tensions in Europe, ongoing conflicts in the Middle East, and the lack of a resolution in sight between Ukraine and Russia, silver and gold prices have rapidly risen. This further solidifies silver’s position as a safe haven, stimulating demand and providing investors with a safe and confident investment option amidst global instability.

Four stocks stand out as potential avenues for investors seeking exposure to the silver market without purchasing physical silver: iShares Silver Trust, First Majestic, MAG Silver Corp. and Silvercorp Metals Inc. These companies operate in the silver sector and are ready to take advantage of the ongoing price rise.

4 stocks to gain exposure to silver

1. iShares Silver Trust

iShares Silver Trust New York Stock Exchange: SLV holds physical silver, which is exchanged for shares issued by the Trust. Each share of the Trust represents a fractional ownership of its net assets. Currently, SLV manages $11.82 billion in assets with a net expense ratio of 0.5%.

Over the past twelve months, SLV is up nearly 11%. During that period, total institutional inflows were $634.74 million, with outflows of $538.52 million. As of Feb. 12, Baymount Management LP was SLV’s largest shareholder, with an ownership stake of 4.57% and 22.5 million shares.

While SLV is already up an impressive 16.7% year to date, it is approaching a critical juncture as it rapidly approaches the highs achieved during the pandemic in 2020. Going forward, it will be worth noting how SLV it behaves near significant resistances and highs. close to $26.

2. First Majestic Silver

First Majestic Silver NYSE:AG acquires, explores, develops and produces mineral properties, focusing on silver and gold production in North America. The company has a market capitalization of $2.28 billion and a modest dividend yield of 0.25%.

The company’s shares have had a stellar start to the year, up more than 30% year to date. While bullish in their Moderate Buy consensus rating, analysts are cautious about the stock’s valuation, with their consensus price target of $6.75 calling for a downside of more than 16%.

3.MAG Silver

MAG Silver NYSE: MAY engages in the exploration and development of precious metal mineral properties. The company explores deposits of silver, gold, lead, copper and zinc. MAG has a P/E of 26.62, a market cap of $1.29 billion, and has forecast full-year earnings growth of 68%.

Like the names mentioned above, MAG has recently risen. The stock has grown by 21% since the beginning of the year, thanks to the recent overshoot of $9.70. Analysts are bullish on the stock, with a consensus buy rating based on four analyst ratings. Notably, the stock’s consensus price target is significantly higher than where it trades: the $18 price target predicts upside potential of more than 43% for MAG.

4. Silvercorp Metals

Silvercorp Metals New York Stock Exchange: SVM, is primarily engaged in the acquisition, exploration, development and extraction of mineral properties in China. The company mainly explores metals such as silver, gold, lead and zinc. SVM offers a dividend yield of 0.78% and has a market capitalization of $679 million.

While the stock is in the red from a year earlier, thanks to the recent rise in the price of commodities like silver and gold, SVM is up more than 33% this year and a whopping 59% on the month previous. As the stock now approaches a significant resistance level of $4, investors would like to see the stock show its strength by turning this resistance area into newfound support if the move is to continue.

Before you consider First Majestic Silver, you’ll want to hear this.

MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and First Majestic Silver wasn’t on the list.

While First Majestic Silver currently has a “Moderate Buy” rating among analysts, top analysts believe these five stocks are better buys.

View the five stocks here