Silver Stocks On The Rise

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Silver Stocks On The Rise

Stocks To Benefit From Rising Silver Prices

Silver prices are rising at a really fast pace, similar to Gold. Just this year, Silver prices have been up by 85% which is actually more than Gold!

In the UK stock market, there are a few FTSE shares that can help you benefit from the rising silver prices. These stocks have a high correlation with Silver prices. So, we can say that the share prices of these companies also rise and decline with silver prices.

Fresnillo (Fres)

The first name is Fresnillo, which is one of the top silver producers from the FTSE 100 index. In the last year, the stock price of Fresnillo has increased by 290%. This was mainly due to the increase in silver and gold prices.

Although they are involved in mining both gold and silver, the output is still skewed more towards silver. So, whenever silver prices increase, it also reflects in the company's margins and revenue.

They have fixed costs of production, which means any upside in silver prices directly translates to higher profit.

However, one key risk for Fresnillo is the variable costs. This includes transport, labor, and energy, which are not under the control of the company. But despite this risk, the higher silver prices could help Fresnillo to offset the higher costs.

Ishares Physical Silver Etc

Another option is the iShares Physical Silver ETC, which gives exposure to the Silver prices. Anyone can get exposure to the Silver without the need to physically buy the silver.

In the past year, the stock has gained an upside of 59% which is quite good. They also have physical possession of Silver, which is stored in the London bank vaults.

So, any rise in the silver prices is also reflected in the iShares Physical Silver ETC. But they do charge a small management fee, which is normal given that they handle everything.

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