With gold bouncing upward off of its July lows, it’s probably a good time to assess the price movement in its sister metal, silver.
Sure enough, it’s been finding strength and out-doing the yellow metal, at least for now. Silver is also considered an inflation hedge by many investors and has the added attraction of being used — and purchased— as an industrial metal.
Here’s how the price chart looks right now:
That move from the mid-July low to today’s high is a 15% gain. Silver can be volatile, and the macroeconomic environment is always changing. But it’s hard to argue with solid gains coming off of lows that appear to be confirmed by the positive divergences seen on the relative strength index (RSI) and moving average convergence divergence (MACD) indicators. It’s still got a long way to go to make it back above that March 2022 high of almost $25.
Here are the silver stocks that may be looking interesting again:
Silvercorp Metals Inc. (NYSEAMERICAN: SVM)
This low-priced, AMEX-traded silver miner is moving along the same lines as the underlying metal — a higher high this week than last week and positive divergences on the RSI and MACD. Silvercorp is Canadian-based and pays a 0.94% dividend. With its low price and accompanying low average daily volume, the stock is unlikely to gain significant attention from large institutional investment firms.
Pan American Silver Corp. (NASDAQ: PAAS)
This Canadian-based silver miner pays its investors a dividend of 1.96%. The price action is similar to the Silvercorp action with positive divergences on the momentum indicators and a higher high than last week’s five trading days. Pan American has operations in North America, Central America and South America.
Coeur Mining Inc. (NYSE: CDE)
This New York Stock Exchange-traded silver miner is headquartered in Chicago with operations in Canada, Mexico and the United States. Look at the way the price today is taking out the highs of last week and note the positive divergences on both the RSI and the MACD indicators below the price chart. The company, formerly known as Coeur d’Alene Mines Corp., has an average daily volume of 5.31 million shares.
First Majestic Silver Corp. (NYSE: AG)
The company is New York Stock Exchange traded and is based in Vancouver, British Columbia, Canada. As with the other silver mining stocks listed, this one is hitting a higher high today than any of last week’s highs — and both of the indicators showing momentum are displaying positive divergences (RSI and MACD, below the price chart.)
First Majestic pays a 0.25% dividend.
Hecla Mining Co. (NYSE: HL)
Hecla hasn’t made the higher high (from last week) as have the other stocks listed above, but the positive divergences on the RSI and MACD have the same look. The company is based in Coeur d’Alene, Idaho, and has been in business for 130 years with operations in Canada and the United States. This silver miner pays a 0.65% dividend.
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