This year, metals fundamentals remain solid: US Treasury debt exceeds $36 trillion, and without a clear solution to the fiscal deficit, monetary issuance seems inevitable, which would further boost gold as a refuge against inflation.
Furthermore, central banks are accumulating gold at record levels, a strong sign of its strategic importance as a reserve asset.
As if that were not enough, gold typically acts as a refuge in contexts of war, offering protection in times of uncertainty. These fundamentals also apply to silver, since, although it has an industrial component, it is also seen as a precious metal and refuge, benefiting from the same monetary and geopolitical dynamics that drive gold.
Let’s see the evolution of silver:
This year, it has accumulated a rise of 26.8%, much higher than that of many companies. In this background context, silver miners were big winners.
Below is a ranking of the five best silver miners of 2024:
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1) Gatos Silver (GATO) – Performance in the year: 148.7%
Gatos Silver was positioned as the mining company with the best performance in 2024 thanks to its successful exploitation of the Cerro Los Gatos project in Mexico. With a focus on maximizing silver production and optimizing costs, the company managed to fully benefit from the increase in metal prices. In addition, it reported solid financial results, which established it as one of investors’ favorites.
2) Endeavor Silver (EXK) – Performance for the year: 105.2%
With a strong presence in Mexico, Endeavor Silver is known for its silver and gold production in underground mines. This year, the company benefited from the reopening of several key operations.
3) Orla Mining (ORLA) – Performance in the year: 76.6%
Orla Mining, although relatively small compared to other companies on the list, has shown promise in the sector. Its main asset, Camino Rojo, is an oxide mine that produces both gold and silver, with competitive operating costs.
4) SilverCrest Metals (SILV) – Performance over the year: 61%
SilverCrest Metals stood out for the development of its Las Chispas project in Sonora, Mexico. With efficient and high-quality production, the company managed to generate robust cash flows that caught the attention of investors.
5) MAG Silver (MAG) – Performance over the year: 45.2%
MAG Silver is a key player in the sector thanks to its participation in the Juanicipio project, one of the most promising silver mines in the world. Although its performance was below other competitors, the company continues to show great long-term potential due to the quality of its assets and its strategic focus on exploration and development.
These 5 companies have far outperformed silver. They obviously have greater volatility than the metal itself, so you have to be cautious with position sizes.
2024 was, without a doubt, a golden year for silver and its miners. With good fundamentals supporting the price of the metal, from growing industrial demand to its role as a safe haven asset, the trend remains bullish, and that is the most notable thing. Furthermore, both silver and gold offer a low correlation with traditional assets, making them interesting assets for any investment portfolio.
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Note: The material contained in this note should NOT be interpreted under any circumstances as investment advice or a recommendation to buy or sell a particular asset. This content is for educational purposes only and represents the opinion of the author only. In all cases it is advisable to seek advice from a professional before investing.
Source: Ambito
