Compare silver miners to silver itself and you will see the huge difference
And to be honest, silver mining stocks shouldn't rise at the same rate as silver, but significantly more.
Because mining stocks are essentially leveraged bets on silver.
Here's a quick example: Silver costs $50, and a miner's production costs are $40. They make a profit of $10 per ounce.
If silver rises from $50 to $60, that's a 20% increase, but the company's profit increases from $10 to $20, a 100% increase
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Silver mining stocks are highly undervalued!
Compare silver miners to silver itself and you will see the huge difference
And to be honest, silver mining stocks shouldn't rise at the same rate as silver, but significantly more.
Because mining stocks are essentially leveraged bets on silver.
Here's a quick example:
Silver costs $50, and a miner's production costs are $40. They make a profit of $10 per ounce.
If silver rises from $50 to $60, that's a 20% increase, but the company's profit increases from $10 to $20, a 100% increase