Silver mining stocks and funds to consider purchasing after a recent retreatin their prices give investors a new chance to take stakes in them before several experts predict they will rise again.

Such silver mining stocks and funds have soared mightily in 2020 and that precious metal historically follows big gains in gold. The white metal usually surpasses the much more expensive yellow metal’s return on a percentage basis and the trend is forecast to continue this year.

Silver mining share prices have surged in 2020, outshining the technology-heavy NASDAQ Composite Index and gold. With the U.S. dollar falling in value this year, it takes additional U.S. dollars to buy silver and gold, thereby boosting their value. Both NASDAQ and the S&P 500 soared to new all-time records on Wednesday, Sept. 2.

Year-to-date returns through Sept. 2 show silver spiking 54.46%, the NASDAQ Composite catapulting 34.37%, gold growing 27.94%, the S&P 500 jumping 10.84% and the Dow Jones Industrial Average gaining 1.97%. The ascent of silver and gold, aided by $6-trillion-plus in federal stimulus and Federal Reserve actions, came after a recent retreat in their prices that provides investors with a new chance to purchase precious metals, and their related mining stocks and funds, at reduced prices.

The NASDAQ Composite Index closed at a record 12,056.44 on Sept. 2. In turn, the S&P 500 finished trading for the day at 3,580.84. surmount its short-term retreat mid-month with a strong start and finish. Silver slide 1.36% for the day to $27.54 per ounce, while gold dipped 1.36% to $1,944.10 per ounce.

Choosing Silver Mining Stocks and Funds to Consider Purchasing After a Retreat

After a giant rise in silver and gold earlier in 2020, profit-taking occurred among some short-term investors, said Rich Checkan, president and chief operating officer of Asset Strategies International, a full-service tangible asset dealer in Rockville, Maryland. But he predicts the silver retreat is about done.

Rich Checkan, president, Asset Strategies International

Meanwhile, the value of the U.S. Dollar Index has fallen about 4% so far in 2020, as of Sept, 2. The index closed on Aug. 31 at its lowest level since May 1, 2018, incurring its worst August in five years and its fourth consecutive month of slippage.

U.S. Dollar Affects Silver Mining Stocks and Funds to Consider Purchasing After a Retreat

Currencies worldwide have slid against the price of gold since mid-March, with the U.S. dollar having dropped in value further than all but a handful of others, said Patrick Heller, communications officer at Michigan’s largest rare coin and precious metals dealer, Liberty Coin Service, of Lansing.

Retail patrons at Liberty Coin Service’s store, only three miles from Michigan’s Capitol building, are stepping up the purchase of silver and gold bullion and coins, Heller said. Increased media coverage about the drop in the U.S. dollar has been a key reason, he added.

Many of those customers are first-time buyers, Heller said. Liberty Coin Service’s sales in July more than tripled June’s total, he added.

Coin Dealer Explains What Silver Investors Consider Purchasing After a Retreat

News about gold hitting record high prices, before adjusting for inflation, is playing a role in lifting demand from retail customers, Heller said.

“In July, our quantity of purchases from the public were still only 82% of the average per month from January 2016 through December 2019,” Heller said. “However, the average transaction size was so large that it was our second-largest total dollars spent buying from retail customers of any month since January 2016. Only August 2017 was higher in dollars spent, though on a much greater number of transactions.”

SIL Is Among Silver Mining Stocks and Funds to Consider Purchasing After a Retreat

Investors have their pick of silver mining stocks and funds to considering purchasing, in addition to bullion and coins. Those who seek dividend income may want to use Global X Silver Miners Fund (NYSE:SIL) as a proxy for silver.

SIL offers a trailing 12-month dividend yield of 1.11%. That income sweetens the return for investors who also have benefitted from a big jump in its stock price, as the chart below shows.

Chart courtesy of www.stockcharts.com

Wall Street’s Kramer Shines Light on Silver Mining Stocks and Funds

“For silver itself, I prefer Wheaton Precious Metals Corp. (NYSE:WPM), which is less about mining than pure silver trading,” said Hilary Kramer, national radio host of the “Millionaire Maker” program who also heads the GameChangers and Value Authority advisory services. “They know what they’re doing and pay a dividend. Rising silver prices will enhance the shareholder payout.”

Columnist and author Paul Dykewicz obtains input from money manager Hilary Kramer, whose premium advisory services include 2-Day Trader, Turbo Trader,High Octane Trader and Inner Circle.

Wheaton Precious Metals offers a current dividend yield of 0.75% and has a forward price-to-earnings ratio of about 50.35. Its recent retreat is shown in the chart below.

Chart courtesy of www.stockcharts.com

Pan American Joins Silver Mining Stocks and Funds to Consider Purchasing After Retreat

“Probably the best stock in the space as far as relative share price performance is Pan American Silver (NASDAQ:PAAS),” said Jim Woods, who heads the Successful Investing, Intelligence Report and Bullseye Stock Trader advisory services. “That stock is outpacing 97% of all other publicly traded companies in terms of relative price strength.”

Pan American Silver offers a current dividend yield of 0.55% and has a consensus forward P/E ratio of 43.29. Its retreat in the last month is shown in the following chart.

Chart courtesy of www.stockcharts.com

Woods uses relative price strength as a screening tool and differentiator from other stock pickers when he chooses recommendations for his Bullseye Stock Trader premium advisory service.

Paul Dykewicz meets with Jim Woods before COVID-19 to discuss new investment opportunities.

Skousen FindsSilver Mining Stocks and Funds to Consider Purchasing After a Retreat

Another investment forecaster who recommends silver and gold is Mark Skousen, PhD, Presidential Fellow at Chapman University, recipient of the inaugural Triple Crown in Economics in 2018 and honoree as one of the 20 most influential living economists. Skousen, who writes a monthly investment newsletter called Forecasts & Strategies, recommended the purchase of Pan American Silver in his TNT Trader advisory service.

The stock recently rose 21% in two weeks, while the call options he recommended soared 101% during the same time span. To protect his gains, Skousen sets stop prices on stock recommendations in his trading services and raises them as the share prices advance to ensure even larger profits are protected during the climb.

Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz.

Risks Come with Silver Mining Stocks and Funds to Consider Purchasing After a Retreat

Investors can earn income and enjoy rising precious metals prices by acquiring shares in silver and gold mining companies, said Bob Carlson, chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets. Investors still need to be aware that the share prices of mining companies are “far more volatile” than those of gold and silver themselves, he added.

Carlson, who also heads the Retirement Watch advisory service, said to remember that silver and gold mining company shares are affected by far more than the price of precious metals. Such risks include a company’s debt level, management skill, labor relations and COVID-19 uncertainty.

Pension fund Chairman Bob Carlson answers questions from Paul Dykewicz in an pre-COVID 19 interview.

Prognosticator Perry Picks Silver Mining Stocks and Funds to Consider Purchasing

Bryan Perry, a one-time Wall Street trader, is recommending Sprott Physical Gold and Silver Trust (NYSE:CEF) as a hedge in his high-income Cash Machine investment newsletter.

Paul Dykewicz interviews Bryan Perry at a MoneyShow conference.

“The price of silver has rallied back to pre-coronavirus levels under the influence of two driving forces,” Perry said. “The first is the tidal wave of liquidity pouring into the global financial system brought on by central bank stimulus. At its core, fiscal stimulus eats away the purchasing power of fiat currencies, making precious metals an attractive hedge and investment.

“Stability in copper prices recently has speculators interpreting that broad commodity price inflation might be brewing, which also would bode well for putting upside pressure on silver that is used in several manufacturing subsectors. Silver is considered the poor man’s precious metal but has a history of catching fire and making sudden sharp moves higher to catch up with gold. Owning CEF offers the best of both metals in one ETF and in physical form.”

It recently traded at a discount to its net asset value (NAV) of 1.96%, after a recent rise in its share price, while its three-year average discount to its NAV is a larger 2.91%. However, CEF does not pay a dividend.

Chart courtesy of www.stockcharts.com

CEF’s assets under management rose to $17 billion on Aug. 4, up 22% since June 30, company officials said. Its net income rose 18.0% to $10.5 million, or 43 cents per share, for second-quarter 2020, compared to $8.9 million for the same quarter last year.

COVID-19 Weighs on Silver Mining Stocks and Funds to Consider Purchasing After a Retreat

The consequences of the global COVID-19 pandemic have taken a huge human toll. As of Sept. 3, 26,036,255 cases and 863,119 deaths have occurred worldwide, as well as 6,114,406 cases and 185,744 deaths in the United States. America has been forced to confront the reality of incurring the most cases and deaths by far of any country, including China, where COVID-19 began.

With the U.S. economy reopening state-by-state and in the District of Columbia, investors have benefitted in general from the stock market’s rebound since March. The NASDAQ Composite and S&P 500 have set record highs after the stock market crash in March and more than $6 trillion in federal stimulus has raised the likelihood of inflation and the outlook for silver.

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Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others.