Many people believe that gold has a high value and therefore is more trustworthy. Silver Although cheaper, it is also of interest. This is due to the fact that the Ag market is small and the volatility is high, which contributes to increased profits with the right choices investment instrument. Together with the change in price precious metal The shares of companies are growing as well. All you need to know is which silver mining company is worth trusting when investing.
Silver and properties that give nobility and economic interest
Ag - next after gold precious metalwhich is distinguished by its nobility. In addition, it has long represented a high valueThe material was used to mint coins for a long time. Silver had been used for coinage for a long time, but it was gradually replaced by a cheaper metal, because Ag is soft and loses its shape quickly. But this property allows to use it in other spheres, for example, industry (production of radio partsThe use of the following methods is not recommended: (e.g., coating the contact parts of mechanisms and boards).
Because of its particular nobility, the precious metal is often used to make jewelry. Its wide range of applications has played a part in the spread of the white material. However, its value is also due to its other properties. Among them:
- low susceptibility to oxidation;
- corrosion resistance;
- mechanical durability;
- the highest reflectivity among the existing materials;
- high thermal and electrical conductivity.
Interest in silver when investing is also conditioned by the economic properties of the precious metal. They point out the acceptable consumer value, which against the background of a constantly changing market allows to get more profit, because the decrease or increase in price in this segment of the market is a fast-passing phenomenon. For comparisons gold can hold its value (both high and low) for a long period of time.
On the one hand, this is good, but on the other hand, when the price collapses, you have to wait a long time for it to recover at least to its previous level, as in the case of Au.
A list of other properties that make the precious metal attractive from an economic point of view:
- high volatility of quotes;
- large stockpiles;
- The high demand makes silver an attractive investment;
- wide area of application, which also contributes to the consolidation of interest in this metal;
- high potential for a shortage of precious metal.
Leaders in silver mining. The main deposits of the natural metal
The list of leading countries in Ag production is very different from the ranking of states in terms of productivity in gold mining. But in both cases, Russia does not give up its position. The volume of resources is 116 thousand tons. More than 2 thousand tons of silver is mined annually. Other leading countries (list compiled according to the Geological Survey of America):
- Mexico - more than 6,000 tons;
- Peru - 4.3 thousand tons;
- China - 3.6 thousand tons;
- Poland - 1.3 thousand tons;
- Chile - 1.3 thousand tons;
- Russia - 1.2 thousand tons;
- Australia - 1.2 thousand tons;
- Bolivia - 1.2 thousand tons;
- Argentina - 1.1 thousand tons;
- US - 0.9 thousand tons.
Bolivia became involved in a scandal when it was discovered that children were working in silver mines. It turned out that the country had lowered the minimum age at which minors were allowed to work. Now a child 10 years old or older can be a worker. This is because Bolivia is considered one of the poorest countries in the world.
The largest mines:
- Antamina (Peru), silver is obtained as a by-product;
- GC mine (China);
- mines of Polymetal (Russia);
- San Cristobal (Bolivia);
- Cerro Moro (Argentina).
Russia's position on the silver market
The total amount of Ag mined around the world is 27 thousand tons. Moreover, a significant share of this amount belongs to the precious metal, which was raised from the bowels of the earth in Russia, China and Argentina. The amount of silver mined in the Russian Federation is about 8% of the total amount.
Silver is a protective asset, so its price has risen over the past year and its position on the precious metals market has strengthened. This is partly due to the "green" energy industry, for the development of which Ag is used in large quantities. The price increase was the reason for the increase in export volumes: more than 340 tons were exported from Russia.
Top 5 global silver manufacturers
The significant volume of Ag produced is due to the specific distribution of minerals around the world. Only some countries have the largest deposits, which, once discovered, companies start mining precious metal. High productivity in silver mining allows us to increase our turnover, to take the leading position in terms of Ag volumes in the world.
Wheaton Precious Metals Corp. (WPM)
Silver Wheaton shares are traded on commodity exchanges (Au and Ag, among others). The transnational company has been in existence since 2004, during which time there have been a number of management changes. So far its output has risen to 26 ounces a year. Moreover, a significant amount of Argentum is for sale. In addition to this, gold is also mined. The organization recently changed its name to Wheaton Precious Metals Corp.
First Majestic Silver Corp.
Head Office mining companies silver is located in Canada. However, it operates in Mexico. Large deposits are being developed here, there are already 7 of them. One of the activities is the production of bullion and its sale. During the last year about 11.7 million ounces were produced. The history of the company began in 2006 when two organizations merged. Since then, the number of lines of business has increased. Cyanidation facilities, mines, and an Ag doré plant were acquired.
Pan American Silver Corp.
When information about silver mining, Pan American Silver Corp. provides a significant share of it in the United States. The main activity is to mine the precious metal and perform all preparatory operations (exploration, development). Moreover, argentum is the basic raw material; copper, gold and zinc are extracted from the bowels of the earth as well. These minerals are by-products, the extraction of which was not the primary goal.
Endeavour Silver Corp.
The mining company has high potential, as its shares are constantly growing in value. The main office is located in Canada. The main areas of activity:
- site investigation;
- acquisition and development of mines.
The company is engaged in silver mining in Mexico, Chile. According to forecasts, Endeavour Silver may soon become the largest producer of Ag. This is facilitated by the large potential of the mines under development.
The company began its activities near the end of the 19th century. And the development is carried out not only silver deposits, but also gold. The main advantage of Hecla Mining - low cost. The largest silver mines are in Alaska and Idaho. In addition, there is a parallel development of a deposit on the territory of Quebec.
It was the integrated approach to mining precious metals that ensured a significant increase in the volume of valuable resources. In 1 year, the company receives more than 12 million ounces of silver. Despite the prospects, high economic potential, shares related to silver of Hecla Mining are trading cheaper than securities of other organizations of the mining industry.
Russian mines and large mining companies
The activity of the largest companies contributes to the growth of precious metal volumes in the Russian Federation. Among them, most often leading positions are taken by those who simultaneously produce different precious metals (gold, silver). Moreover, Ag may be a by-product. It is obtained by mining gold.
The purpose of mining is to produce Au, but Ag, mixed with ore, rises from the bowels of the earth. And the amount of gold significantly exceeds the amount of silver. Because of this, white precious metal is counted together with yellow, because it is necessary to first purify by any available method, taking into account the amount of losses. The growth of silver is significant, increasing by several million ounces each quarter.
CJSC Chukotka Mining and Geological Company (Kinross Gold)
Kinross Gold is a company that originated in Canada. Most of the precious metals are mined on the African continent, another 20% - in the U.S., the same amount - in Russia. In addition, there is a Russian representative office engaged in the same activity - it extracts the precious metal. It exists in Russia since 1995 (GGK Chukotka Mining and Geological Company). Most of the Argentum is mined at the Kupol mine.
Highland Gold Mining (UK)
The company producing silver is considered one of the largest. The head office is located in Great Britain, the plants are located all over the world. The main shareholder was Roman Abramovich. Areas of activity: geological exploration, development and mining of the precious metal. And the main purpose is to obtain gold. Ag is a by-product, its amount is much less than Au. However, Highland Gold Mining is actively developing, so even the average volume of Ag is a significant share of the world production of this metal.
LLC Amur Gold
The organization is engaged in the development of alluvial deposits. The main goal is to gold mining. Silver, like the other companies, is a by-product of the production of the precious metal. Initially there was an organization called Artel Prospectors, which later transformed into Amur Gold. It is located in the Khabarovsk region. The main deposits are: GU Buor, GU Ulakhan.
Nordgold entered the market in 2007. Today it is an international organization that regulates the activities of subsidiaries, mines, and deposits in different regions. Nordgold has offices all over the world, from America to Russia. The main focus of Nordgold's activities is gold mining. Ag is a by-product, so it is produced in smaller quantities than Au. Main activities: prospecting, exploration and development of areas where traces of the precious metal have been found.
Dynamics of silver deposits development
There is a small increase in the volume of silver, this is due to the fact that there are not many Ag deposits - the precious metal is mainly contained as a component of various ores, which complicates its detection.
Silver exchange rate today
The price rate is set for 1 troy ounce, equal to 31.1034768 g. Central Bank of the Russian Federation determined the value 1 gram 64.85 - when buying, as well as 63.8 - when buying. In this case, the Moscow Stock Exchange (MICEX), which trades securities and precious metals, as well as other similar organizations, do not determine the price of physical silver - all transactions are made in the information space. For example, Ag, traded on the New York Stock Exchange, can be purchased at the rate of $27.81 per barrel.
Silver is a metal related to gold, the dynamics of price changes are noted against the background of the general mood of the commodity market.
Silver as an investment product: benefits and risks
Companies trading silver, other securities, precious metals offer to buy it at a price that already includes a commission. But first it is necessary to assess the risks and learn about the advantages of such an investment tool. By some criteria, Ag is the best way to invest, this is due to factors:
How you can buy shares of silver mining companies
The shares of Russian silver mining companies are valued at the stock exchange no less than those of foreign companies. This is due to the large turnover, high profit, constant development and expansion of such organizations. The demand for their shares is growing. It is possible to buy securities at the Mosbirge. However, the purchase is not available natural personsYou will have to go through intermediaries.
This requires opening a bank account (for example, Tinkoff offers this possibility). It is necessary to choose a mining company, about each there is information on the exchange and is freely available on review sites. You should pay attention to what kind of ore and how much is mined, the amount of profits, etc.
Widespread human use of silver
The main industries in which argentum is used:
- jewelry production;
- electronics: making contact elements of microcircuits, manufacturing of radio components;
- dishware production;
- manufacturing of glass products with reflective surfaces;
- medicine, dentistry, etc.
Video: silver, mining and silver, Russian and global mining companies
Commentary from a financial analyst
If you buy silver futures, this option is not suitable for long-term investing because of the high volatility. Conversely, it is often used by speculators. For long-term investment it is better to choose deposits, but again, take into account risk factors. In this case the effective interest rate EFF (EFF) will help to assess the profitability.