Top Performing Silver Investments Predicted for 2025
Gold's lesser-known cousin, silver, is a rare and valuable metal. It's essential for various industrial purposes and is the top electrical and thermal conductor amongst all metals, making it highly desirable for electrical applications. Over half of silver's demand stems from the industrial sector due to its unique properties.
Silver enjoys popularity amongst investors as well, for it shares many characteristics with gold, such as being a safe-haven metal. It offers investors a chance to hedge against inflation and cope better during an economic downturn. Silver can also contribute to a more diverse investment portfolio. Here's a rundown on how to invest in silver without physically buying the metal.
Top stocks
Top silver stocks in 2025
Many companies in the mining sector extract silver. However, most mining corporations primarily focus on producing industrial metals like iron ore, "copper", and "aluminum", often producing silver as a byproduct.
Meanwhile, precious metal mining companies predominantly concentrate on gold. As a result, although many companies mine some silver, it usually contributes a minor portion to their revenues. Despite these limitations, several top silver stocks shine brightly:
| Company | Description || --- | --- || First Majestic Silver (NYSE:AG) | A precious metals mining company that derives the majority of its revenue from silver || iShares Silver Trust (NYSEMKT:SLV) | An exchange-traded fund (ETF) that follows silver's price || Pan American Silver (NASDAQ:PAAS) | A mining company with sizeable silver reserves || Wheaton Precious Metals (NYSE:WPM) | A precious metals streaming company with significant silver exposure |
First Majestic Silver
1. First Majestic Silver
First Majestic is one of the silver mining sector's most straightforward plays. After closing its acquisition of Gatos Silver, which it agreed to buy for $970 million in 2024, the company anticipates garnering over 50% of its revenue from silver. This is significantly higher than the average 30% for its silver-producing peers.
Although it's a Canadian company, First Majestic primarily focuses on Mexico as it produces more silver than any nation globally. The company currently operates three mines in Mexico and has several more in development.
First Majestic also manages the Jerritt Canyon Gold Mine in Nevada. Acquiring Gatos Silver would give it a 70% stake in the Los Gatos joint venture, which owns the Cerro Los Gatos silver mine in Mexico. Furthermore, First Majestic owns and runs a minting facility, First Mint, which produces silver bars, ingots, coins, and medallions for sale to the public.
First Majestic's focus on silver production places it in a favorable position to outperform the precious metal's price. It can ramp up production while lowering costs, subsequently growing profits faster than silver's price increase.
However, its business model also leaves it vulnerable to operational issues and cost overruns. Mine challenges, management blunders, and exposure to other commodities can adversely affect a silver mining company's stock performance.
First Majestic aims to become a long-term outperformer. It seeks to become the world's largest primary silver producer and invests heavily each year to locate and develop new silver mines. It has also spent heavily to purchase other silver mines.
Pan American Silver
2. Pan American Silver
Pan American Silver presents itself as the world's leading silver mining company. It possesses the largest silver reserves globally, with 468 million ounces of proven and probable silver resources and 1.1 billion ounces of measured and indicated resources. With 20.4 million ounces, it ranks second as the world's second-largest silver producer.
The company boasts seven operating silver and gold mines across North and South America. It also has several silver growth catalysts, such as potential projects at its La Colorada Skarn, Escobal, and Navidad mines.
First Majestic Silver (NYSE:AG)
Pan American Silver stands out for its robust financial position and high liquidity. Its business generates free cash flow, enabling it to finance expansions while delivering cash back to shareholders through dividends and share repurchases. The combination of strong finances and long-term upside to silver makes Pan American Silver an attractive option for investors.
Wheaton Precious Metals
3. Wheaton Precious Metals
A precious metals mining company that gets the majority of its revenue from silver
Wheaton Precious Metals focuses on streaming precious metals. Instead of operating physical mines, Wheaton offers mining companies cash to cover parts of their mine development costs. In return, the company receives the right to buy some metallic products produced by the mines at fixed prices. Its goal is to become the world's premier precious metals investment vehicle.
The company's portfolio features 18 operated mines and another 29 development projects. It generates more than 60% of its revenue from gold and over 35% from silver, with the remainder coming from palladium and cobalt. The company anticipates its production to increase by 50% by 2028 as more of its partner's development projects start producing.
Wheaton has the contractual right to purchase silver at an average price of $4.70 per ounce until 2028. Any silver price above that level generates profit for the company.
The company's focus on streaming enables it to generate substantial cash flow. Wheaton uses the cash to invest in new streams and distribute dividends to shareholders. The company has a flexible dividend policy, paying out more than 25% of its revenue as dividends.
Wheaton's business model allows it to gain from increasing silver prices, much like a mining operation. However, it carries fewer risks and potential expensive mishaps associated with actual mining, making it a safer investment option for precious metals like silver.
iShares Silver Trust
iShares Silver Trust (NYSEMKT:SLV)
4. iShares Silver Trust
The iShares Silver Trust is an exchange-traded fund (ETF) that primarily focuses on physical silver. The silver ETF aims to mimic the silver price movement by owning silver bars housed in vaults in London and New York City.
As the ETF contains actual silver, it closely mirrors the precious metal's price. The following chart shows how the iShares Silver Trust share price has changed in relation to the silver price.
An exchange-traded fund (ETF) that tracks the price of silver
Image source: YCharts. Over the long term, the ETF has generally followed the silver price trend. Investors get this consistent performance at a reasonable cost, as the fund's annual expense ratio is 0.5%, which is a relatively low ETF expense ratio. It's a minor expense to invest in silver without possessing the metal or dealing with the operational risks associated with silver mining stocks.
Should I invest?
Is silver stock investment suitable for you?
Silver's price can be unstable, fluctuating as economic, inflationary, and geopolitical concerns develop and diminish. These influences impact silver prices, mining stock prices, silver and gold ETFs, and other digital currencies.
However, silver's investment features are not its entire story. As mentioned, silver is a vital industrial metal. Its significance to clean energy is particularly noteworthy, especially in the rapidly growing solar energy and electric vehicle (EV) industries. This demand for silver should increase in the coming years, making it an exciting way to capitalize on clean energy growth.
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Most investors prefer investing in silver stocks over the actual metal, like coins and bars. When demand increases, silver companies can leverage growth opportunities, enabling them to enhance their profits faster than the silver price rise, allowing them to surpass the precious metal. By not possessing the physical metal, investors also avoid the hassles and risks related to acquiring, storing, and insuring a physical asset.
Wheaton Precious Metals (NYSE:WPM)
As a multipurpose precious metal with industrial, consumer, and investor demand, silver is becoming increasingly influential in the economy. Consequently, silver mining stocks and silver-focused ETFs could be appealing additions to diverse portfolios.
FAQ
Investing in silver stocks: FAQ
A precious metals streaming company with significant silver exposure
Is Warren Buffett investing in silver?
Though Warren Buffett isn't a fan of gold investing, he has purchased silver in the past. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) obtained 3,500 tons of silver in 1997. However, he disposed of his entire silver portfolio by 2006. As of 2024, Buffett had not bought more silver.
Which stocks are linked to silver?
Many silver mining companies, such as Pan American Silver and First Majestic Silver, possess substantial silver reserves. Meanwhile, exchange-traded funds, like iShares Silver Trust, contain silver in bank vaults, reinforcing the value of these stocks.
Are silver stocks a wise investment?
Silver stocks can be a sound investment. Due to silver's importance in lower-carbon energy, demand for silver should grow, potentially boosting the metal's price over the long term. A rising production and price situation could enable silver stock investments to generate appealing returns throughout the long haul.
Matt DiLallo has no position in any of the stocks mentioned. Our Website has no position in any of the stocks mentioned. Our Website has a disclosure policy.
Investing in silver can provide diversification benefits due to its unique properties as a safe-haven metal and its industrial uses. Silver stocks like First Majestic Silver, Pan American Silver, and Wheaton Precious Metals can offer investors a way to capitalize on silver's potential price increase without the hassles of physically buying the metal. On the other hand, passive investors might prefer exchange-traded funds (ETFs) such as iShares Silver Trust, which aim to track silver prices and offer lower expense ratios. In general, silver stocks can be attractive additions to diverse portfolios, especially in the context of increasing demand for the metal in industries like clean energy.
