Silver has quickly become traders’ and investors’ major concern as the iShares Silver Trust ETF saw one of its hugest rallies ever on Monday. Furthermore, silver has recently soared to the highest levels since February 2013. Indeed, silver’s value demonstrates extreme price moves from time to time and there are reasons why both the precious metal and companies that offer exposure to it have to be closely watched in February and beyond.
First of all, silver is considered to be a hedge against inflation, especially in times of economic instability. Another reason is that silver is expected to take a solo part in President Joe Biden’s Green New Deal efforts, since this precious metal is the best conductor of electricity and heat and can be applied in solar panels and batteries. Some investors hurry up to get the physical commodity, while a wide range of retail silver marketplaces are presently having difficulties to satisfy the demand. There are many good reasons why silver could have a strong 2021, therefore you should definitely watch this silver stock in February.
Pan American Silver
In case investors wish to get exposed to silver without actually buying this precious metal, they may take the following path. They may simply invest in silver miners like Pan American Silver Corp (NASDAQ:PAAS). Pan American is a silver miner that operates in Mexico, Peru, Canada, Bolivia, and Argentina. This company’s results are warmly advised to be watched in February as its share price is correlated to the price of silver, which would most surely keep rallying during the month. Pan American Silver stock also grants investors with 0.86% profit while the company recently elevated its dividend payout by 40% in November to $0.07 per share.
The impact of the panilver operations was enormous last year. Pan American announced 2020 production results a couple of weeks ago. The results were mainly below the company’s guidance range. The company stated that FY 2020 consolidated silver production was 17.3 million ounces compared to the guidance range of 18-19 million ounces. With that being mentioned, Pan American Silver Corp also mentioned that it is looking forward to a 35% increase in silver production relative to 2020 and record gold production in 2021, making this a remarkable stock to watch in February and throughout the year.