EXK, AG, HL: Silver Stocks Surge as the Metal’s Price Hits 13-Year High

Stocks of silver mining companies are surging as the price of the metal hits its highest level in 13 years.

The share prices of Endeavour Silver (EXK), First Majestic Silver (AG), and Hecla Mining (HL) are each up more than 6% on the trading day. Stocks of other silver producers are up 4% or more as the spot price of silver reaches $36.15 an ounce, its highest level since 2012.

Analysts say silver’s price has been gaining ground due to technical momentum, improving fundamentals, and growing interest from investors who are seeking safe-haven assets amid macro-economic uncertainty. Silver also benefits from the fact that it’s both an industrial and precious metal that is used to make everything from solar panels to jewelry.

Pacing Gold

Gold and silver tend to move in tandem with each other. But over the last year, gold’s price has increased 44% and hit an all-time high above $3,500 an ounce. Gold has gotten an added boost from buying among central banks as geopolitical instability rises. The price of silver, by comparison, has risen 20% in the last year and has not kept pace with gold – until now.

Silver’s price increase is currently getting an added lift from substantial inflows into spot silver exchange-traded funds (ETFs), say analysts. Additionally, money managers and futures traders have upped their bullish bets on silver’s price continuing to rise in the near-term. This is good news for stocks of silver miners and producers, which have outpaced the broader market year-to-date.

Is EXK Stock a Buy?

Endeavour Silver’s stock has a consensus Strong Buy rating among seven Wall Street analysts. That rating is based on six Buy and one Hold recommendations issued in the last three months. The average EXK price target of $5.68 implies 20.34% upside from current levels.

Read more analyst ratings on EXK stock