How to Look at Silver Stocks
Silver stocks have faced severe selling over the past few years thanks to lower silver prices. With this, there are a lot about questions of whether silver stocks are even worth the investment.
For investors, when it comes to silver stocks, they should be thinking long-term and not worry too much about the daily fluctuations.
Even with the decline in silver stock prices, there are several silver miners that are still worth looking at. You shouldn’t be just paying attention to their stock prices: look at their production, cost to produce, and how much cash they have. Their properties and managements are important, too.
Below I have identified five silver stocks that could help investors earn solid returns over time.
Great Panther Silver Ltd (NYSEMKT:GPL)
Headquartered in Vancouver, Canada, Great Panther Silver Ltd (NYSEMKT:GPL) is primary silver producer focused in Mexico. It is also striving to become a gold producer. It currently has three operating locations: Topia Mine, San Ignacio Mine, and Guanajuato Mine. The company also has few exploration projects. (Source: Great Panther Silver Ltd., accessed October 8, 2015.)
In the second quarter of 2015, Great Panther produced 1.08 million silver equivalent ounces—51% higher than the same period a year ago. Its all-in sustaining costs to produce an ounce of silver declined 49%, from 24.40 in the second quarter of 2014 to $12.54 in the second quarter of 2015. (Source: Great Panther Silver Ltd. August 5, 2015.)
With a market capitalization of roughly $70.0 million, this silver stock trades at around $0.50.