1 Silver Stock That’s Dirt Cheap and Ready to Rally | The Mesh Report

1 Silver Stock That’s Dirt Cheap and Ready to Rally

The Gold Enthusiast May 2, 2022 Comments Off on 1 Silver Stock That’s Dirt Cheap and Ready to Rally
Silver and gold stocks have taken a few steps back in recent sessions of trade. With silver recently slipping, the top-tier miners have fallen suit. As you may know, the miners tend to amplify moves made by the underlying commodities they mine. As silver looks to surrender the gains posted in recent months, it may be a compelling time to take the role of contrarian.

After plunging another 2.3% on Monday, silver now trades at around $23.69 per ounce. Though it is really hard to value precious metals, I think that many investors who are light on such hedges may wish to give them a second look, not just for bounce-back potential over the near term but for a hedge against higher inflation and weaker economic growth.

Cheap precious metals stocks may be a buy on the dip

Indeed, Russia’s invasion of Ukraine and soaring inflation have provided a bit of a tailwind for the ailing precious metals. Still, given the risks out there, I don’t think silver or gold is nearly as high as they could be. Could Bitcoin and other crypto assets be to blame? It’s hard to tell.

Bitcoin may be a new-age gold. But it’s traded like a tech stock of late, and a more volatile one at that! During days that see extreme swings, Bitcoin may as well be a speculative high-multiple stock! Though I don’t want to slam Bitcoin investors, I personally think its limited trading history makes it unworthy of the title of millennial gold. That said, investors may wish to diversify across the asset to lower their portfolio’s long-term correlation.

In terms of lowering correlation, though, silver looks intriguing. I like to view it as gold on steroids, given its many applications beyond just jewelry and tableware. In terms of silver investing, it’s hard to pass up the top miners for those who are bullish on the precious metals. That said, those looking for stability may wish to also consider physical bullion or coins. However, those who choose to go the physical route may not be happy with the meagre gains potential relative to their miners.

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