Many silver stocks look beaten up in 2017. They are either near a bottom or struggling to overcome a resistance price. Most have prices below their 50-day moving averages, and this is usually a bearish sign.
However, we found three silver stocks that are flourishing. These stocks are currently rising and look like they could continue their upward trends.
Silver companies are dependent to some extent on the yield on bank CDs or Treasury bonds. As long as those instruments pay low interest, metals in general and silver, in particular, will remain attractive. Several analysts expect higher prices for silver in 2017. (See also: Why Gold and Silver Prices are Diverging.)
Let’s look at our three top silver stocks and their prospects for 2017. All figures are current as of May 27,2017.
Northern Dynasty Minerals Ltd.
Northern Dynasty (NDM.TO) has been in an upward trend since October 2016. It had a sharp drop to start 2017, but has rebounded. Buying volume has been greater than selling volume, indicating that buyers are more numerous and enthusiastic than sellers.
On January 13, Northern Dynasty announced that it was putting 20.2 million new shares on the market. This diluted the share price, but demand for this stock is high enough that it is rising again.
Great Panther Silver Ltd.
Great Panther (GPL) mines properties in Mexico. Though it is a silver miner, it also mines gold, lead and zinc. The original company that became Great Panther Silver began in 1965.
This company offers stability simply for its longevity. As of this writing, it is trading at $1.22 per share. The stock has consistently found support at this level.
If you are ready to weather the volatility, there may be a lot more upside to this stock.
Pan American Silver Corp.
Pan American Silver (PAAS) focuses its effort on mines in Peru, Mexico, Argentina and Bolivia. This is not a pure silver play, because the company also mines gold, zinc, lead and copper. The company dates back to 1979.
The chart on PAAS shows that it has been in a long base since August of 2016. Watch for a high-volume breakout from this base.
The Bottom Line
Silver itself may rise in price in 2017, but that doesn’t mean all silver miners are well-managed or that investors are buying them. The three silver stocks on this list have outshone their peers. Note that two of these stocks, Northern Dynasty and Great Panther, trade below $5 per share. A stock with this low a price can have greater volatility than a higher-priced stock like Pan American. (See also: Volatility’s Impact On Market Returns.)