Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Silver miners: juniors will beat majors

Silver miners: juniors will beat majors

Valentina Ruiz Leotaud

Junior silver miners are set to outperform not only major producers of the precious metal, but also all gold miners over the coming years to 2020, according to a new analysis from BMI Research.

By looking at a selection of companies included in BMI's newly published outlook for mining stocks— such as Tahoe Resources and KGHM Polska — the research firm states that as commodity prices improve, those who invested in smaller silver miners and embraced the illiquidity risk associated with their shares will be rewarded.

“Shares of silver mining companies are more thinly traded, being exchanged in lower volumes and with a limited number of interested buyers and sellers," it says.

"This illiquidity often leads to volatile changes in price when transactional activities increase, as a new dollar invested in the silver market has a much greater effect on the price than the gold market,” the report adds

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