Silver may be known as the Devil’s Metal when it comes to its relationship with gold and silver investors. Silver has other uses than gold in many industries, and when prices skyrocket it becomes a key replacement or alternative to gold plated jewelry. The relative value to gold and the daily price swings can often also be sometimes difficult to accurately assess. Bank of America Securities recently published its silver and silver industry primer in the second week of June (2024) to identify trends in silver supply and demand, solar and electric vehicle related use, and the producer fundamentals and sector valuations.
The BofA top primer stock picks with Buy ratings included Pan American Silver Corp. (NYSE: PAAS) and Wheaton Precious Metals Corporation (NYSE: WPM). BofA Metals Strategist Michael Widmer sees the price of silver rising to $35 per ounce over the course of 2026 — versus a current price of about $29.50 per ounce.
Pan American Silver was called “catalyst-rich” with a solid balance sheet and offering solid production growth with upside potential across various assets in the portfolio. BofA counts Pan American Silver as a top stock pick in the 2024 precious metals sector. BofA’s price objective of $24.50 was versus a $19.89 share price for Pan American Silver.
Wheaton Precious Metals is listed as a peer-leader in volume growth with exposure to top-tier jurisdictions and with a strong balance sheet. Wheaton was also identified as offering higher exposure to silver than most peers with an estimated 36% of current revenue from silver. BofA’s price objective of $60.00 for Wheaton was versus a current price of $52.94.
Key drivers mentioned included Silver being more exposed to industrial production (54% of demand) versus only about 10% for gold. Silver is also noted as having the highest electrical conductivity of any element and the highest thermal conductivity. Additional uses included mirrors, a use in space exploration, water purification systems, medicinal uses, coatings for medical devices, photography development, X-rays in less developed nations, and so on.
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The 6-month charts below from StockCharts.com should identify the price of silver (SLV) and PAAS and WPM stocks.
