The recent surge in silver prices has sparked renewed interest in the precious metal as an investment avenue, particularly amidst a backdrop of economic uncertainty and geopolitical tensions. Despite its traditional correlation with gold, silver has demonstrated an independent trajectory in recent months, outperforming its counterpart and attracting attention from investors seeking diversification and hedging opportunities.

Christopher Ecclestone, an analyst at Hallgarten & Company, sheds light on the dynamics shaping the silver market in a short note he released earlier this morning on Aya Gold & Silver Inc. (TSX: AYA | OTCQX: AYASF). He notes the intriguing divergence between gold and silver prices, emphasizing the impact of global events such as inflationary pressures and geopolitical conflicts on precious metal markets. Ecclestone’s insights underscore the complexity of factors influencing silver’s price movements and its potential as an investment asset.

One notable aspect of silver’s recent performance is its resilience amid challenging economic conditions. While gold has historically been viewed as the ultimate safe haven asset, silver’s versatility and industrial applications have contributed to its appeal as an alternative investment. Ecclestone highlights the role of industrial demand in driving silver prices, suggesting that silver’s utility extends beyond its function as a store of value.

Moreover, the Critical Minerals Institute (CMI) Co-Chair Jack Lifton always tells us that silver is the #1 technology metal, he often references a notable supply-demand imbalance in the silver market. The forecasted increase in global silver supply, coupled with strong demand projections, suggests a potentially favorable environment for silver investors. Ecclestone’s observations underscore the significance of supply dynamics in shaping silver’s price trajectory and investment outlook. And we are counting down to having John Carter from Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) at 9 AM EST, tomorrow – Wednesday, April 10, 2024, from 9-920 AM (click here to join).

In preparation – we have done our research on the Top 5 silver producers listed on the Canadian markets. Here are the top 5 silver companies listed on the TSX by market capitalization:

#1: Pan American Silver Corp. (TSX: PAAS | NYSE: PAAS)
Market Cap: C$ 9.357 billion
Latest News Release: April 8, 2024 – Pan American Silver reports additional high-grade drill results from the La Colorada Skarn project [Read more]
About: Pan American is a leading producer of silver and gold in the Americas, with operations in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. They have a strong reputation for sustainability, operational excellence, and financial management. Headquartered in Vancouver, B.C., their shares trade on the NYSE and TSX under “PAAS.”

#2: First Majestic Silver Corp. (TSX: FR | NYSE: AG)
Market Cap: C$ 3.167 billion
Latest News Release: April 1, 2024 – First Majestic Announces 2023 Mineral Reserve and Mineral Resource Estimates [Read more]
About: First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. They own and operate several mines, including San Dimas, Santa Elena, and La Encantada, along with development and exploration assets.

#3: Fortuna Silver Mines Inc. (TSX: FVI | NYSE: FSM)
Market Cap: C$ 1.993 billion
Latest News Release: April 8, 2024 – Fortuna reports strong gold equivalent production of 112,543 ounces in the first quarter of 2024 [Read more]
About: Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru. They emphasize sustainability, efficient production, environmental protection, and social responsibility.

#4: MAG Silver Corp. (TSX: MAG | NYSE American: MAG)
Market Cap: C$ 1.751 billion
Latest News Release: March 27, 2024 – MAG Silver Announces Robust Updated Technical Report for Juanicipio [Read more]
About: MAG Silver Corp. is a Canadian exploration company focused on advancing high-grade precious metals projects in the Americas. Their joint venture interest in the Juanicipio Mine in Mexico positions them as a top-tier primary silver mining company.

#5: SilverCrest Metals Inc. (TSX: SIL | NYSE American: SILV)
Market Cap: C$ 1.497 billion
Latest News Release: March 11, 2024 – SilverCrest Reports Fourth Quarter and 2023 Annual Financial Results [Read more]
About: SilverCrest is a Canadian precious metals producer headquartered in Vancouver, BC. Their principal focus is the Las Chispas Operation in Sonora, Mexico, with ongoing initiatives to expand their asset base and operate multiple silver-gold mines in the Americas.

In summary, the recent surge in silver prices highlights the metal’s potential as a valuable component of a diversified investment portfolio. Whether through physical ownership, ETFs, mining stocks, or futures contracts, investors have various avenues to participate in the silver market and potentially benefit from its upward trajectory.

[Note from the Published: In this headline photo (L-R): Peter Clausi and John Carter from Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF), with Stephen Burega from Romios Gold Resources Inc. (TSXV: RG | OTCQB: RMIOF). The 15-oz bar was drawn during PDAC, and the winner was Mathieu Stephens from NeoTerrex Minerals Inc. (TSXV: NTX)]

Sometimes you have to put your trust in the management team of a resource company when it’s in its infancy. Unless of course you’re a geology savant and can figure out from a two or three paragraph description of a property if it’s going to be highly prospective or not. In which case you should be out in this great big world doing it for your own benefit instead of pouring through thousands of quarterly reports and corporate presentations trying to figure out who might be on the cusp of something worth investing in.

In the meantime, let’s look at a little gold explorer in the Yukon and Northwest Territories of Canada called Rackla Metals Inc. (TSXV: RAK). This Canadian-based mineral exploration company is part of the Gold Group of companies led by Simon Ridgway, who stands as the Company’s CEO and a Director. The company is engaged in the acquisition and exploration of mineral properties with the Rivier Property, located southeast of Ross River, Yukon, which covers lode gold mineralization of the Motherlode type and the recently staked three new claim groups targeting gold mineralization within the extension of the Tombstone Gold Belt in the Northwest Territories, Canada (RAK Main, Jos and Cinnabar Projects).

But before looking at the properties it probably helps to know a little more about the gentleman at the helm. Simon Ridgway is a co-founder of Fortuna Silver Mines Inc. and Radius Gold Inc., a founder and CEO of Volcanic Gold Mines Inc. (TSXV: VG), a prospector, a mining financier and a Casey Research Explorer’s League inductee. He gained his initial experience with grass roots mineral exploration, starting out as a prospector in the Yukon Territory in the ’70s. Mr. Ridgway and the exploration teams under his guidance have discovered gold deposits in Honduras, Guatemala and Nicaragua and a silver/gold deposit in Mexico. On the financial side, companies operating under the Gold Group banner have raised over C$450 million for exploration and development projects since 2003.

You could say that Rackla Metals is allowing Mr. Ridgway to come full circle and return to his roots. This context is important because it makes what was said in the Tombstone Gold Belt press release a little more meaningful. The staking includes 14 claims covering approximately 11,500 ha and targets the extension of the Tombstone terrain from the Yukon Territory into the Northwest Territories and follows the significant intrusive related gold discovery made by Snowline Gold Corp at the Rogue project within the Tombstone Gold Belt. Rackla’s teams have used their historic experience in the district to trace the geology and geophysics 90km southeast across the Yukon-NWT border. Multiple intrusive bodies belonging to the Tombstone Plutonic Suite have intruded the Selwyn basin sediments within the Rackla claims. Previous work by operators in the Yukon on the other side of the divide has recorded significant stream sediment gold anomalies that appear to be draining several of the intrusive bodies within the NWT.

All of this may mean little to the casual observer, but when it comes from someone with the pedigree of Mr. Ridgway, one should probably pay a little closer attention. The Rivier Property consists of 116 quartz claims covering 2,404 hectares, located in the Watson Lake Mining District 80 kms southeast of Ross River, Yukon. Previous soil and silt sampling programs have defined a plus two-kilometer-long, strong broad gold and pathfinder anomaly along a faulted contact of an ultramafic body. The anomalous gold in soils appear to be associated with mapped Listwanite alteration of the ultramafic body. With several soil samples running over 2 grams per tonne gold, this broad zone contains potential for significant gold mineralization.

Rackla has been working on drill permits for the Rivier Project but the process has advanced slower than anticipated. Permitting in the Northwest Territories should progress more quickly and Rackla expects to receive permits on the new claims in time for a multi-project field season next year. Meanwhile, Rackla plans to complete a detailed airborne magnetic program, prospecting and geological mapping in the months remaining for the current field season. With approximately C$1.2 million in cash and a CEO who has proven he can raise capital when necessary, who knows what could be in store for this C$9.5 million market cap company.