Anyone investing in silver last month enjoyed gains as silver exchange-traded funds such as the ETFS Physical Silver Shares Trust (NYSE Arca: SIVR) were among August's top-performing funds. The funds followed the price of silver upward during the month, which surged about 20%.
Silver has now gained 29% from a 34-month low hit on June 28.
The precious metal gained on the back of several factors, most of which look set to continue in the months ahead.
Here are three reasons why investing in silver now will be a money-making move:
Investing in Silver Reason #1: U.S. Retail DemandOne key reason behind the silver price surge continues to be strong retail demand.
As David Wilson, metals analyst at Citigroup, said to the Financial Times, "Silver is a retail investor metal rather than gold."
Silver ETFs saw inflows in excess of $100 million in August, unlike their gold ETF cousins.
And unlike gold ETFs, silver ETF holdings have actually increased this year by nearly 6% to 20,082 metric tons. Gold ETFs holdings so far this year have fallen by one-fourth, or 680 metric tons.
Top 10 International Companies To Watch For 2015: Goldcorp Incorporated(GG)
Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Sean Williams]
If you're willing to roll the dice even further, my suggestion would be to look at the two most cost-efficient gold miners: Yamana Gold (NYSE: AUY ) and Goldcorp (NYSE: GG ) . Both Yamana and Goldcorp stood atop my top-performing gold miners leaderboard in the first-quarter thanks to extremely low mining costs associated with byproduct metal sales. Yamana has been particularly strong, turning in remarkable production growth, while Goldcorp offers investors one of the lowest debt-to-equity ratios in the sector thanks to its strong operating cash flow. To add, Yamana and Goldcorp both offer yields of 2% and are valued at just 10 and nine times forward earnings estimates.
- [By Daniel Putnam]
First, and most important, earnings estimates are stabilizing. In the past sixty days, 2013 estimates for the major gold miners have begun to tick up. In most cases, the increase is very modest. For instance, Goldcorp‘s (GG) EPS estimates have climbed from $0.91 to $0.95, while Barrick Gold‘s (ABX) have inched up from $2.57 to $2.64. Newmont Mining (NEM), Anglogold Ashanti (AU), and Gold Fields Ltd. (GFI) have shown similar gains. This positive rate of change marks a significant departure from the steady stream of bad news investors have had to endure in recent years.
- [By Jim Jubak]
Gold spiked higher yesterday on news of more violence in the Middle East and an afternoon tumble in the dollar. Gold for December delivery is up 2.34% to $1364 an ounce. Gold stocks are up even more. Jubak's Picks portfolio members Goldcorp (GG) and Yamana Gold (AUY), for example, were up 5.94% and 5.55%, respectively, as of 2:45 PM New York time.
- [By Dan Caplinger]
Dan, however, does believe CEO Randy Smallwood has the experience necessary to deal with these challenges. Strategies may include obtaining better terms from existing partners such as Barrick Gold (NYSE: ABX ) , Goldcorp (NYSE: GG ) , and Hudbay Minerals (NYSE: HBM ) on future contracts.
Hot Gold Companies To Invest In 2014: Sibanye Gold Ltd (SBGL)
Sibanye Gold Limited (Sibanye Gold), formerly GFI Mining South Africa (Pty) Limited, incorporated on December 12, 2002, is a producer of gold in South Africa. Sibanye Gold is primarily engaged in underground and surface gold mining and related activities, including extraction, and processing. Sibanye Gold�� operations are located in South Africa. Its principal mining operations include Kloof-Driefontein Complex (KDC) and Beatrix. Exploration activities are focused on the extension of existing ore bodies and identification of new ore bodies at existing sites. As of January 10, 2013, Sibanye Gold mined only gold, with silver as a by-product.
KDC Operation
The KDC mine is located in the Gauteng Province of South Africa in the Far West Rand mining district, some 60 kilometers southwest of Johannesburg. KDC consists of the Driefontein and Kloof mines. As of January 10, 2013, KDC is consisted of 13 producing shaft systems that mine different contributions from pillars and open ground and five gold plants of which two process mainly underground ore and three process mainly surface material. Driefontein is situated some 70 kilometers west of Johannesburg. Kloof is situated in the Magisterial District of Westonaria, some 60 kilometers west of Johannesburg.
Beatrix Operation
The Beatrix operation is located in the Free State Province of South Africa, some 240 kilometers southwest of Johannesburg, near Welkom and Virginia, and consists of the Beatrix mine. Beatrix operates under mining rights covering a total area of approximately 16 800 hectares. As of January 10, 2013, Beatrix had four shaft systems, with five ventilation shafts to provide additional up-cast and down-cast ventilation capacity and is serviced by two metallurgical plants. It is a shallow to intermediate-depth mining operation, at depths between 700 meters and 2 200 meters below surface. The mine has a refrigeration and cooling infrastructure in both its North and West Sections. Beatrix is man! aged as three operational sections: the North Section (consists of Shaft No. 3), the South Section (consists of Shaft No. 2 and Shaft No. 1) and the West Section (consists of Shaft No. 4).
Advisors' Opinion:- [By Lisa Levin]
Gold: This industry jumped 1.20% by 11:40 am. The top performer in this industry was Sibanye Gold (NYSE: SBGL), which rose 3.2%. Gold futures gained 0.44% to trade at $1,281.00 an ounce.
Hot Gold Companies To Invest In 2014: First Majestic Silver Corp.(AG)
First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Doug Ehrman]
Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS ) and First Majestic (NYSE: AG ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW ) struggles as well.
- [By Lisa Levin] Related AG Morning Market Losers First Majestic Silver (AG) in Focus: Stock Rises 5.9% - Tale of the Tape Related ARCI Top 4 Stocks In The Electronics Stores Industry With The Highest ROE Morning Market Movers
The Dow jumped 0.77% to 17,074.40, while the NASDAQ composite index rose 0.47% to 4,436.25. The broader Standard & Poor's 500 index gained 0.53% to 1,978.08.
Hot Gold Companies To Invest In 2014: Thompson Creek Metals Company Inc.(TC)
Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Basic Materials shares gained around 0.24 percent in trading on Wednesday. Meanwhile, top gainers in the sector included Harmony Gold Mining Company (NYSE: HMY), up 4.1 percent, and Thompson Creek Metals Company (NYSE: TC), up 3.8 percent. In trading on Wednesday, cyclical consumer goods & services shares were relative laggards, down on the day by about 0.36 percent. - [By Garrett Cook]
Monday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from AK Steel Holding (NYSE: AKS) and Thompson Creek Metals Company (NYSE: TC).
- [By Garrett Cook]
Monday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from AK Steel Holding (NYSE: AKS) and Thompson Creek Metals Company (NYSE: TC).
Hot Gold Companies To Invest In 2014: Golden Star Resources Ltd(GSS)
Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.
Advisors' Opinion:- [By Rich Duprey]
Clash of the titans
When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX ) fell almost 13% and Kinross Gold (NYSE: KGC ) was down 14%. - [By Sean Williams]
Golden Star Resources (NYSEMKT: GSS )
It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone.
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