Taking Advantage of the Rising Silver Prices, Analysts Recommend These Two Stocks

Published on: Jun 13, 2024
Author: Amy Liu

One of the key factors attracting investors to silver is its investment properties. Similar to gold, silver is often seen as a safe haven and hedge tool against economic uncertainty. Additionally, silver typically experiences higher volatility in the market compared to gold, providing opportunities for investors seeking higher returns. The price of silver is influenced by various factors, including industrial demand, investment demand, monetary policies, and global economic conditions.

While it’s relatively rare for stock investors to invest solely in silver, Bank of America analyst Michael Widmer recommended two stocks on Wednesday, June 12th, which could potentially continue to benefit from the rise in silver prices.

Despite silver futures surging nearly 23% in the past three months compared to a 8.4% increase in gold futures and a 5% rise in the S&P 500 index, Widmer remains bullish on silver for the latter half of 2024 and 2025, forecasting an average silver price of $35 per ounce in 2026, roughly 17% higher than the current futures price.

Within Widmer’s buy-rated North American stocks, two stocks were specifically mentioned: Wheaton Precious Metals (WPM) and Pan American Silver (PAAS).

Widmer described Wheaton as a “precious metals company, with an estimated 36% of its revenue coming from silver in 2024.” Pan American Silver is characterized as “rich in catalysts, with a robust balance sheet, steady production growth, and various assets with strong potential for growth in the portfolio.”

Apart from individual company stocks, investors can also invest in silver through the iShares Silver Trust ETF (SLV), which has seen a 23% increase in the past three months.

Metals Focus stated in a recent research report that due to anticipated growth in industrial demand, the silver market has been in a structural market deficit for the fourth year in a row.

Michael DiRienzo, President and CEO of The Silver Institute, stated, “Silver’s prospects look promising in the context of the transition to green energy. As gold prices have potential for further increases, silver prices are poised to follow suit.”

Base Metals Gold Precious Metals Silver