Best Silver Mining Stocks to Buy UK – Invest with 0% Commission

Identifying the best silver mining stocks to watch this year is high on every investor and fund manager’s to-do list. After all, in 2020 silver bullion surged more than 150% higher from its lowest to its highest price for the year. The coronavirus pandemic wreaked havoc in the markets, causing investors to flee to safe-haven markets such as silver and other precious metals.

In this guide, we go through the top silver mining stocks list from the UK, Canada, Mexico, Argentina, Peru, and the other regions where silver production is. Let’s get started with some of the top silver miners for this year!

Top Silver Mining Stocks 2021

Below is an overview of some of the top silver mining companies around the world. These companies include some of the best junior silver mining stocks and the best silver mining stocks with dividends.

You can read a more in-depth analysis of each stock in the next section!

  1. Fresnillo – Overall Best Silver Mining Stock UK – Invest Now
  2. Pan American Silver – Overall Best Silver Mining Stock Canada – Invest Now
  3. Hecla Mining – Best Silver Mining Stock US – Invest Now
  4. First Majestic Silver Corp – Overall Best Silver Mining Stock Mexico
  5. Hochschild Mining – Overall Best Silver Mining Stock Peru
  6. Fortuna Silver Mines – Overall Best Silver Mining Stock for Sustainable Mining
  7. Polymetal International – One of the Best Silver Mining Stocks UK with Dividends
  8. Endeavour Silver Corporation – Once of the Best Junior Silver Mining Stocks
  9. Wheaton Precious Metals – Best Silver Mining Stocks for Streaming Minerals
  10. Newmont Mining – Best Silver Mining Stock with World’s Largest Gold Mine

Best Silver Mining Stocks UK Reviewed

The impact of the coronavirus pandemic caused huge moves in the silver bullion market which, in turn, caused huge moves in junior silver mining stocks, as well as the higher market cap mining stocks.

However, identifying the best silver mining stocks to watch, and potentially invest in, does take some research. After all, it’s important to know the health of these silver miners before the pandemic to help understand the prospects of the company after the pandemic.

But, fear not! Help is at hand! In the section below, we discuss some of the best silver mining stocks to watch right now and consider investing in!

1. Fresnillo – Overall Best Silver Mining Stock UK

Fresnillo is definitely one of the best shares of silver mining to watch. The UK incorporated company is the world’s largest silver producer from ore, as well as Mexico’s second-largest gold miner. The company currently operate seven mines and also own one of the largest precious metals land reserves based in Mexico.

The share price of the company has been on a rocky ride in recent years, as have silver bullion prices. However, the huge surge in the price of precious metals during the coronavirus pandemic has helped lift Fresnillo’s share price.

Fresnillo

At the beginning of 2020, Fresnillo’s share price rejected its previous ten-year low at 590p. Since then, the share price has surged more than 200% higher before pulling back in early 2021. If precious metals prices can continue to rise, investors may choose Fresnillo as an option to invest in.

The company has a strong market cap of £7.2 billion and is also a contender for one of the best silver mining stocks with dividends to watch, with a 2.18% dividend yield. The company’s share price came under pressure in early 2021 due to a landslide and closure of some of its mines due to COVID-19. But once things are up and running again, it’s definitely a stock to watch!

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2. Pan American Silver – Overall Best Silver Mining Stock Canada

Pan American Silver is one of Canada’s most diversified mining companies. The company owns and operates mines in Canada, Mexico, Peru, Bolivia, Argentina and Guatemala. With a 26-year history, the company has a solid reputation for social responsibility and sustainability.

The company’s share price has been outperforming most of the other mining companies since 2016, rising more than 600% from the low of 2016 ~$5.37 to the high of 2020 ~ $40.22. Investors have enjoyed the diversification of the company which produces and sells silver, gold, lead, zinc and copper.

Pan American Silver stock chart

Pan American Silver is most likely at the very top of an investors’ silver mining stocks list to watch this year. The company reported a record operating cash flow of $462.3 million in 2020 which helped the company to pay back all bank debt in full while doubling its quarterly dividend payment to shareholders.

While the company also makes it to the best silver mining stocks with dividends list, any company which has paid back its debt in full is one to watch! Total revenue for 2020 was $1.3 billion and the company’s shares trade on the Nasdaq Exchange and the Toronto Stock Exchange.

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3. Hecla Mining – Best Silver Mining Stock US

Hecla Mining has a $3.67 billion market cap and is the largest silver producer in the United States. It also happens to be one of the oldest precious metals mining companies listed on the New York Stock Exchange, listed since 1891.

While the company’s share price has been quite rocky in the past it has outperformed some of the other silver mining companies in the industry. From its March 2020 low of around $1.40 to its high in February 2021 of around $8.45, its share price has risen nearly 500%!

Hecla Mining stock chart

Analysts have also turned bullish on the company’s prospects after they posted a 3% revenue increase to $691.9 million in 2020. Hecla managed to double its silver production after purchasing 100% of the Greens Creek from Rio Tinto in 2008.

While the company managed to refinance its long-term debt to 2028, it has also reduced the overall net debt and increased dividends to investors. Analysts are now eyeing the previous record highs for the share price around $13.13.

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4. First Majestic Silver Corp – Overall Best Silver Mining Stock Mexico

First Majestic Silver Corp has been ripping higher since the coronavirus pandemic. In fact, from its March 2020 low price of around $4.26 to its highest price in February 2021, the stock has risen nearly 500% higher!

The company is a pure silver play as they own and operate three silver mines in Mexico called the San Dimas Silver & Gold Mine, the Santa Elena Silver & Gold Mine and the La Encantada Silver Mine.

First Majestic stock chart

In 2020, the company posted revenues of $363.9 million which was largely attributed to the rapid rise in precious metals pricing, as well as a surge in silver production. The company also ended the year with a record cash amount of $238.6 million.

Even more interesting is that the President and CEO of the company, Keith Neumeyer, expects higher prices in silver to continue due to the transition into greener energy and electric vehicles. These are both hot sectors in which pure silver miners, like First Majestic Silver Corp, are likely to benefit from.

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5. Hochschild Mining – Overall Best Silver Mining Stock Peru

Hochschild Mining is a British-based operator of four underground mines in Peru and Argentina. With over 50 years of experience, they are one of the leaders in precious metals mining. While the company has been affected by the impact of the coronavirus pandemic there are some good takeaways from its recent earnings report.

As an example, in late 2020 the silver producer increased its dividend and finally managed to reach its first positive cash position in a decade. However, the profits and sales for the company fell well below 2019 levels due to its mines in Peru and Argentina shutting down over the pandemic period.

Hochschild Mining stock chart

Despite its mines being shut down, Hochschild’s share price surge more than 315% higher over the coronavirus pandemic period. However, at the start of 2021, the company’s share price was down nearly 50%.

This hasn’t deterred Chief Executive Ignacio Bustamente from given a bullish assessment of the company, citing that they have a strong financial footing. This has been echoed by analysts at RBC Capital Markets who believe the company could be seeing profits climb to $412 million this year.

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6. Fortuna Silver Mines – Overall Best Silver Mining Stock for Sustainable Mining

Fortuna Silver Mines is a Canadian-based silver miner that operates two mines in Peru and Mexico. Most pure silver mining companies performed well over the coronavirus pandemic period and Fortuna was one of them. Its share price surged nearly 600% higher from its March 2020 low ~$1.45 to a February 2021 high of ~$9.86.

While the company benefitted from rising silver bullion prices, it also benefitted from a surge in demand from institutional investors in sustainable companies. Every year, Fortuna releases its annual sustainability report to protect its long-term economic, social and environmental standing.

Fortuna Silver Mines stock chart

The surge in demand for silver and sustainable investing has had a positive effect on Fortuna’s stock price. The fundamentals also stack up with the company generating revenues of $244.4 million in 2020 with a profit of $21.9 million.

While impressive, these figures were lower than previous years but this was largely due to the forced temporary closure of some of its mines due to COVID-19. Having said that, the company’s latest earnings report provides guidance for 2021 forecasting an increase in silver production and gold production from its mines. That could translate into higher profits as well.

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7. Polymetal International – One of the Best Silver Mining Stocks UK with Dividends

Polymetal International is an Anglo-Russian precious metals mining company listed on the London Stock Exchange. The mining company has paid out more than $1.8 billion in dividends since its initial public offering (IPO) in 2011, making it a top contender for the best silver mining stocks with dividends.

However, since its IPO the company’s share price has struggled. It only managed to break above its IPO price during the surge higher in silver mining companies’ share price over the coronavirus pandemic.

Polymetal stock chart

Analysts remain bullish on the prospects of Polymetal, largely due to the bullish nature overall in bullion and precious metals. Some analysts believe the earnings could surge more than 19% this year.

However, what has investors most excited is the mining company’s dividend yield which could fluctuate between 8 – 10% this year. If so, this makes it to the very top of the best silver mining stocks with dividends.

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8. Endeavour Silver Corporation – One of the Best Junior Silver Mining Stocks

Endeavour Silver Corp is a mid-tier precious metals miner that could be considered one of the better junior silver mining stocks. The company operates three high-grade silver and gold mines in Mexico, as well as other mines in Chile.

Just before the coronavirus pandemic, the company’s share price was retesting a previous record low around the $0.99 price level. However, since then the share price has surged up more than 600% into early 2021.

Endeavour stock chart

Not only has the company benefitted from a surge in demand in silver and gold but it also attracted investors focused on junior mining stocks and sustainable investing. The company produces an annual sustainability report for stakeholders to view which recently highlighted a 90% water recycling and reuse rate for its mining operations.

Endeavour is planning to invest $32.8 million on capital projects at its three operating mines. While a big outlay, the management board believe this will be covered by operating cash flow so further growth is likely in the future.

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9. Wheaton Precious Metals – One of Best Silver Mining Stocks for Streaming Minerals

Wheaton Precious Metals is a Canadian-based precious metal streaming company. The company is actually listed on the Toronto Stock Exchange, the New York Stock Exchange and the London Stock Exchange. Its business model is unique in that it doesn’t own or operate silver or gold mines but has contracts with its owners.

For an upfront payment and additional payment upon delivery, Wheaton purchases by-product precious metals and cobalt from different mines all over the world. Some of these mines are owned by other larger operators such as Newmont Mining, Glencore, First Majestic and many others.

Wheaton stock chart

The company’s share price performed well over the coronavirus pandemic period and was actually on a steady rise higher before. During this period, its stock price managed to record a new all-time high price of around $57.99. Since then, the price has pulled back, largely driven by a fall in gold prices and gold stocks.

A surge in silver and gold prices could help the company’s bottom line as its business model allows them to purchase at an upfront cost that could be lower than future prices. The company’s portfolio of mineral streams is diverse from different regions around the world and in different precious metals such as silver, gold, palladium, cobalt and others.

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10. Newmont Mining – Best Silver Mining Stock with World’s Largest Gold Mine

Our focus on the top silver mining stocks list would not be complete without Newmont Mining. This is also one of the best gold trading stocks, as it’s the largest gold mining company in the world and also produces silver, copper, zinc and lead. While headquartered in the United States, the company owns mines in Nevada, Colorado, Quebec, Ontario, Australia, Mexico, Argentina, Peru and in many other regions.

The company’s share price has been rising steadily since reach near-record lows in 2015. Since then, the price has managed to rally nearly 400% higher before topping out at previous record highs around the $72.28 price level.

Newmont stock chart

The share price accelerated during the coronavirus pandemic led by a surge in the price for precious metals. However, in early 2021 as base metal prices fell, so did Newmont’s. With many analysts forecasting higher silver and gold prices in the future, Newmont is positioned well for the increase in demand.

In its latest quarterly earnings report, Newmont recorded profits totalling $824 million. This was a huge increase from the fourth quarter in the year before which came in at $565 million. For investors seeking a more diversified play in precious metals, Newmont could be the one.

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Are Silver Mining Stocks a Good Investment?

If you’ve been reading any financial headlines over the past year, you will notice there has been a lot of talk about silver and precious metals. Most analysts, economists and hedge fund managers are now forecasting higher prices for silver in particular. And, whatever is good for the price of silver is likely to be good for silver mining companies.

Silver is just like any other commodity – it is affected by supply and demand. When these start to shift, so do prices in silver. However, what is really exciting about silver is that there are pressures on BOTH the supply and demand side which are pointing towards higher prices in the future.

Let’s take a look at some of the key factors for investing in silver and why the top silver mining stocks listed above should be at the forefront of your mind.

1. The supply of silver is rapidly falling. The supply of silver that is mined peaked in 2015 and has been rapidly declining over the past five years. In fact, mine production from the top ten largest silver-producing countries (Peru, Bolivia, Australia, Argentina, Mexico, Chile, Poland, China and Russia) have all been in steady decline. Less supply means higher prices for what is left!

2. The demand for silver for industrial purposes is rapidly increasing. The demand for silver has now moved far beyond fashionable jewelry. More than 50% of the global demand for silver comes from the industrial sector. Silver is the key component in electric vehicles and solar panels which are two sectors that are forecasted to rapidly grow in the future.

3. The demand for silver as an investment is at record highs. By the end of 2020, the holdings of silver from global ETFs (exchange-traded funds) reached a record high of 1 billion ounces. The holdings in these ETFs have been rising since 2015. Demand has also increased after silver was thrust into the mainstream media by the Reddit WallStreetBets movement who are trying to drive silver prices higher.

All of these factors bode well for the companies in the silver mining stocks list discussed previously. Whether you are focusing on junior silver mining stocks, or the best silver mining stocks with dividends, having an allocation towards this sector could pay off in the long run.

Best Silver Mining Stock Brokers in the UK

Now that you know more about some of the best silver mining stocks to buy, it is now time to think about which stockbroker or stock app you should use.

Your broker should provide you with the best choice of markets, competitive fees, top-notch customer service and a state of the art share dealing platform.

To save yourself time, you can focus on our selection of the best silver mining stocks brokers in the UK below.

1. eToro – Overall Best Broker for the Silver Mining Stocks to Watch List

etoro logoeToro offers users more than 2,400 stocks to trade and invest in through real stock investing accounts and CFD (Contracts for Difference) accounts which offer leveraged trading. This means traders can control a large position with a small deposit.

The option to both trade and invest in silver mining stocks is great in itself, especially because eToro supports the use of fractional shares. This means you can buy a fraction of one share of the company instead of buying one full share. This is really great if one share of the company is high and you’re starting off with a small account.

eToro Stats Fresnillo

eToro also supports the ability to trade directly on the silver market and on silver ETFs (exchanged traded funds), providing a full range of options to capitalise on the price direction of silver. Fees are really competitive too with 0% commission on stocks!

The eToro trading platform is also very simple to use and you can get started in just a few minutes with a minimum deposit of only $200. You can also access other great features such as the Copy Trading function to find other high-performing traders to copy, as well as the Copy Portfolio function to invest in ready-made portfolios covering different themes.

Pros:

  • Globally regulated (FCA, CySEC, ASIC)
  • Access more than 2,400 stocks from around the world
  • Trade on indices, currencies and ETFs
  • 0% commission on stocks
  • Variety of deposit methods
  • Simple to use trading platform
  • Access social and copy trading

Cons:

  • Technical analysis tools may be limiting for advanced traders

Your capital is at risk.

2. Plus500 – Best Overall Broker for the Best Silver Mining Stocks List

plus500 logo

Plus500 provides users with the ability to speculate on the price direction of more than 2,500 financial CFD instruments including stocks, commodities, indices, ETFs, and currencies. Trading with Plus500 also offers peace of mind as Plus500 Ltd is a publicly listed company on the London Stock Exchange.

This commodity trading broker offers commission-free trading on all of its products with only spreads and overnight fees payable on certain trades. The spreads are competitive and can be viewed on the broker’s website as they differ for each instrument.

Plus500 Spreads

The Plus500 trading platform is user-friendly and simple to use. Accessing markets is easy and you can trade from any browser or your phone. The broker also provides additional tools such as the Trader’s Sentiment indicator so you can gauge the percentage of investors on Plus500 buying or selling an asset.

As Plus500 provides access to CFD trading accounts, this means you can trade on margin and control a large position with a small deposit. The margin rates vary depending on your categorisation as a client but retail clients can access a maximum of 1:30 leverage with professional clients 1:300.

Pros:

  • Globally regulated (FCA, CySEC, ASIC, MAS and more)
  • 100% commission-free trading
  • Access more than 2,500 financial CFD instruments
  • Low spreads across markets
  • Web or browser-based trading
  • 24/7 customer support
  • Simple to use trading platform

Cons:

  • Only CFD share trading available

72% of retail investors lose money trading CFDs at this site.

How to Buy Silver Mining Stocks in the UK

In the section below, we walk through how to make your first trade from the comfort of your own home and wherever you are in the world! To demonstrate this we will be using the world’s biggest social trading platform, FCA, CySEC and ASIC regulated broker eToro – the best commission-free broker to buy shares in silver mining companies.

Step 1: Open an Account

Opening an account with eToro is a simple process. The first stage is to create an account that only requires a username, email, password and the acceptance of the Terms & Conditions document.

eToro application

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After this, you will have direct access to navigate the eToro trading platform. However, to start depositing, withdrawing, and trading you will need to fill out an application form so the broker knows more about you such as employment details, financial information, trading experience, and more. This is a requirement for all regulated brokers.

Step 2: Upload your ID

All regulated brokers will need to confirm your identity and address for KYC and AML procedures. These verification documents can be easily uploaded from the eToro trading platform.

The verification documents required are:

  • A valid passport or driver’s licence
  • A utility bill or bank account statement issued within the last three months

eToro ID

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Step 3: Deposit Funds

Making a deposit into your eToro trading account is a simple process. The broker only requires a minimum deposit of $200 to get started. Deposit methods include:

  • Bank wire transfer
  • Debit/credit card
  • Neteller
  • Skrill
  • PayPal

You can deposit funds by clicking the Deposit funds button on the bottom left of the trading platform.

eToro Deposit

Step 4: Find your stock and place a trade!

Once you’re in the eToro trading platform you can search for your stock in the search box at the top. You can use the best silver mining stocks list discussed previously or type in your own selection.

Once you have selected your silver mining stock then click the Trade button to open a trading ticket.

eToro Trading Ticket

From this trading ticket, you simply need to enter the amount you want to invest. The ticket will detail any fees associated with the investment which in the screenshot above says Commission Free. Awesome! Click Open Trade to complete the transaction.

Your capital is at risk.

Conclusion

Since the coronavirus pandemic, there has been huge pressure on both the supply and demand side for silver. With silver mines producing less and demand massively increasing due to increased industrial use (electric vehicles and solar panels) it is now a very interesting time for silver mining stocks.

Finding the right silver miners to invest in is the next challenge for most investors. However, we’ve already discussed the top ten silver mining stocks to watch for this year. The most important element is to make sure you are using a top-notch online stockbroker.

From our research, eToro ticks a lot of boxes with the main factor being 100% commission-free stock trading. There’s also a host of other benefits such as fractional share investing, CopyTrading and CopyPortfolio services and the ability to trade with a highly regulated broker. Better yet, you can get started in minutes!

eToro – Buy Silver Mining Stocks with Zero Commission

etoro logo

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FAQs

What are the best silver mining stocks to watch?

In the article above, we have listed ten top silver mining stocks to buy. These range from pure silver miners such as First Majestic Silver Corp, Fortuna Silver Mines and Endeavour Silver Corporation and other diversified miners such as Fresnillo and Newmont Mining.

Are there any silver mining stocks with dividends?

Finding silver mining stocks with dividends is a great idea as it enables investors to share in the company’s profits. Some miners do not pay dividends. However, Polymetal International is one dividend stock to watch with analysts forecasting an 8 - 10% dividend yield this year!

What are the best junior silver mining stocks to buy?

One of the best junior silver mining stocks for investors is likely to be Hecla Mining. This company is responsible for a third of overall U.S. silver production. It also holds the largest silver reserve in the country.

Can you invest in silver mining stock ETFs?

Yes you can! There are plenty of silver mining stock ETFs you can invest in. The key is to make sure you have the right broker to access as many markets as possible. For example, with eToro you can access more than 2,500 markets!

Are silver mining stocks going to rise?

One of the biggest impacts on the price of silver mining stocks is the price of silver. With huge pressures on the supply and demand side, many analysts and mining company directors are forecasting higher prices for silver in the future.

About Alan Draper PRO INVESTOR

Alan is the Chief Editor of Buyshares.co.za and is responsible for ensuring all the content on our site is accurate, relevant and helpful. He is an experienced editor who has worked for several leading online publications. Alan is also a writer and is an expert on the stock market.

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