Silver The Metal And Silver Stocks Hit New Highs: Here’s Why

It’s new 52-week highs this week for silver and for silver mining stocks.

There are two basic reasons: the first is that New York Federal Reserve President John Williams recently said that there’s room for interest rate cuts in the “near term” – making it more likely that the December Fed meeting will take that road.

That another rate cut may produce increased inflation levels may be triggering buyers to add precious metals including silver positions.

The second reason is that silver is needed in the production of semiconductor circuit boards, a requirement for AI materials. As the artificial intelligence mania takes off, companies that manufacture and design such chips, like Nividia, Intel and Advanced Micro Devices (among others) are likely to be buying more of the metal.

Silver and silver stocks hit new 52-week highs

Here’s the daily price chart for silver:

The price took off Friday morning and took out the previous high from October. This keeps it strongly above the uptrending 50-day (the blue line) and 200-day (the red line) moving averages, a sign of continued strength.

Here’s the daily price chart for Discovery Silver:

The stock rallied to a new high above the earlier-in-the-month high and remains above the uptrending 50-day and 200-day moving averages.

This Canadian-based miner trades on the Toronto exchange and operates what it describes as “the world’s largest undeveloped silver reserve,” the Cordero project in Mexico. Discovery also runs gold mining sites in Canada. Market cap is $6.23 billion.

Hecla Mining’s daily price chart looks like this:

In a similar pattern to the above price charts, you can see how the stock Friday rallied to a new high, leaving behind the former high from early November.

Hecla is the largest silver producer in North America, according to the company’s website, with mining operations in Canada and the United States. The metals firm also finds gold – it’s been in the business since 1891. Market cap is $11.27 billion.

The daily price chart for Pan American Silver is here:

The price Friday morning gapped up to a new high – above Thursday’s high and the high from October. Volume is very light but that’s standard for NYSE trading on the day after Thanksgiving.

Based in Vancouver, the company operates silver mines in Ontario, in Mexico, and throughout South America. Market cap is $19.19 billion. The stock trades with a price-earnings ratio of 26. Pan American pays a .79% dividend. Market cap is $19.28 billion.

Here’s the daily price chart for Silvercorp Metals:

Friday’s gap up takes the stock to a new closing high and makes it five days in a row of positive action.

The Amex-traded miner is headquartered in Vancouver and maintains exploration and construction projects in Ecuador. The company also operates production mining from two locations in China.

Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.

No artificial intelligence was used in the writing of this post.

More analysis and commentary at johnnavin.substack.com.