Top Silver Stocks to Watch in Q2 2023: Prices and Growth Insights

Santacruz Silver Mining leads in value and growth, while Dolly Varden Silver shines with strong momentum.

Silver mining companies specialize in acquiring, exploring, developing, and producing mineral assets. Besides silver, these companies often extract other metals such as zinc, lead, copper, and gold, with silver frequently being a valuable byproduct. Prominent industry players include Wheaton Precious Metals Corp. (WPM), Hecla Mining Co. (HL), and SSR Mining Inc. (SSRM).

Following a turbulent year, silver futures have rebounded close to levels last seen in April 2022. However, silver stocks, represented by the Global X Silver Miners ETF (SIL), have underperformed the broader market, delivering a -17% return over the past 12 months compared to the Russell 1000's -8%.

Below are the top three silver stocks excelling in value, rapid growth, and performance as of April 10.

Best Value Silver Stocks

These stocks have the lowest 12-month trailing price-to-sales (P/S) ratios, providing a useful gauge of value, especially for companies in early development stages or industries facing major disruptions. A lower P/S ratio indicates you pay less for each dollar of sales, suggesting potential for future profitability.

Source: YCharts

• Santacruz Silver Mining Ltd.: A Canadian miner focused on mineral properties in Mexico and Bolivia. Recent leadership changes include Wayne Corso as COO and Gregg Orr as CFO. Q4 production surged 464% year-over-year, highlighting strong operational momentum. It also trades OTC in the U.S. under ticker SZSMF.
• Andean Precious Metals Corp.: A Canada-based silver miner with operations across South America, expanding its footprint in the region.
• First Majestic Silver Corp.: Produces silver and gold from properties in the U.S. and Mexico. Recently renewed its share repurchase program to buy back up to 5 million shares (~2% of outstanding shares) over the next year. Sold its La Guitarra Mine for $35 million in Sierra Madre stock.

Fastest Growing Silver Stocks

Ranked by a growth model balancing year-over-year quarterly revenue and earnings-per-share (EPS) growth, excluding extreme outliers with over 1,000% growth to ensure stability. Both sales and earnings growth are key indicators of company success.

Source: YCharts

• Santacruz Silver Mining Ltd.: See above. Note: Negative EPS reported in the latest quarter.
• Aya Gold & Silver Inc.: Canadian miner with key projects in Morocco. Recently secured full ownership of the Zgounder mine via a $6.5 million deal. Q4 silver production rose 53% compared to the previous year. Trades OTC in the U.S. as AYASF. Negative EPS in the recent quarter.
• Silvercorp Metals Inc.: Canadian company operating in China, producing silver, lead, and zinc. Launched a share buyback program authorized to repurchase over 7.1 million shares through August 2023.

Silver Stocks with the Strongest Momentum

These stocks achieved the best total returns or smallest declines over the last 12 months among our selected companies.

Source: YCharts

• Dolly Varden Silver Corp.: Focuses on exploring and developing precious metals, primarily at the Kitsault Valley Project in British Columbia. Notably, individual investors hold 41% ownership, giving public investors significant influence.
• Aya Gold & Silver Inc.: See above.
• Silvercorp Metals Inc.: See above.

Emerging Trends in Silver Stocks

Silver’s diverse industrial applications include electrical components for electronics and automotive industries. Importantly, silver is a critical element in solar photovoltaic technology due to its excellent conductivity. With solar energy adoption accelerating globally, demand for silver is expected to rise, positioning silver stocks for potential growth.

Investment Risks in Silver Stocks

Silver serves dual roles as an industrial and precious metal, used in jewelry, electronics, and as a hedge during economic uncertainty. However, the silver market is smaller and more volatile than gold’s, leading to greater price fluctuations that can affect mining stocks. Additionally, many miners produce silver alongside other metals, meaning stock performance may be influenced by factors unrelated to silver. Investors should carefully assess the proportion of silver production within a company before investing.

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