Is It Too Late To Buy Silver Stocks? Why Norseman Silver Could Be Your FOMO Cure
Precious metals such as gold and silver are some of the best investment vehicles as they can maintain their value in the face of economic downturns. This seems to be the case for the past few months – with the negative performance of the stock market, gold and silver have kept going higher.
However, the best way to invest in gold and silver may not be owning the hard metals themselves, but rather investing in mining companies’ stocks. Historically, mining stocks have shown better performance than the metal because their balance sheets can grow more than the intrinsic value of the metal.
A higher metal price is a major factor that can boost investment back into mining companies as it helps generate more income. This allows mining companies to expand to more projects, acquire other properties, etc.
In this article, we will consider Norseman Silver to see its potential as a good buy right now and how it might help you keep your ‘fear of missing out’ in check.
About Norseman Silver
Norseman Silver focuses on the acquisition, exploration, and development of assets with significant upside potential such as silver. Norseman silver is traded on two exchanges; the Canadian TSXV and the US OTC as NOC and NOCSF respectively.
In the face of the price fluctuations of precious metals silver could have more upside than gold since its use is not limited to just being an inflationary hedge. Some industries, green energy technologies in particular, use silver in the production of EVs (electric vehicles) and solar panels. This gives the silver market an edge as its industrial component will tend to profit more against a macro backdrop.
The majority of veteran investors including the legendary investment adviser Warren Buffet have shown their preference for gold and silver stocks rather than hard metals. In the words of Warren Buffett “bullion produces no income.” Investing your money in silver stocks through dealers and miners offers a better potential return on investment – corporate profit.
A rise in the price of silver causes a rise in the price of shares of silver mining companies, presenting the investor opportunity to make large profits. When invested in a smart, efficient company with skilled management as well, silver stocks investment is a great choice. In addition, these silver mining companies help you manage risks through diversification.
Its small market cap also gives Norseman an advantage. With the company trading with a market cap of roughly USD 9.23 million, there’s a lot of upside potential if they are to catch up with similar companies that have market caps around $25m.
Another thing to take note of… Large-cap mining stocks usually behave differently in bull runs, they tend to jump at the start.
On the other hand, small-cap mining stocks like Norseman can tend to experience a breakout later on.
Reasons Why Norseman Silver could be a Good Buy Now
Silver and gold are two notable precious metals that serve as an inflation hedge for many investors. They both tend to have a relationship in terms of trading, where an increase in the price of gold can cause cash to flow into silver.
For some time now, the two precious metals have not experienced a steep increase in price, making them a good investment.
Norseman’s January low left the shares price at almost 17 cents, but by February the price had returned to nearly 25 cents. This means that if one can secure a clear entry point then they can also secure the upside potential.
Another solid reason why Norseman silver is a stock investors may need to consider buying now is the company’s innovative spirit. Norseman is committed to high-impact exploration projects in America that are focused on silver. Interestingly, they have recorded progress – many discoveries.
Not long ago, the company recorded a successful discovery. Discovery of a low sulphidation (LS) epithermal vein system within its 285 sq. km Taquetren project in Rio Negro, Argentina. In July 2020, the company also invested some more money into the drilling program it had earlier launched.
The drill program on one of its properties, B.C properties, and the Argentina project received an extra $1.5 million. All these projects were strategic and had the potential to attract new investors.
Aside from the B.C property, Norseman has other properties in British Columbia. These include the Cariboo and Silver Vista and Silver Switchback projects.
In March of the same year, Norseman successfully entered a partnership with the “Optionors”.
The partnership involved the acquisition of 100% interest in the Taquetren Silver Project (the “Project”), located in the Rio Negro province of Southern Argentina.
According to Norseman, in a press release, the project which is located within the SomunCura Massif covers roughly 285 square kilometers (110 square miles). The geologic setting of the Project is calc-alkaline, bimodal Jurassic Taquetren Formation volcanic rocks, within the Gastre fault zone.
The Gastre fault system is a transcontinental shear zone, extending from the Andean Cordillera to the Atlantic coast resulting in a series of half grabens and tectonic basins and associated faulting.
Work to date has suggested favorable hydrothermal alteration.
The President of Norseman, Sean Hurd said that the company was hopeful about the project as it was one of the most under-explored mining districts in Argentina. He also affirmed that the district has a lot of discoveries – Patagonia Gold’s Calcatreau (Gold-Silver Deposit) and Pan American’s Navidad (another major prospect). Pan America’s Navidad is one of the largest undeveloped silver deposits in the world.
Sean Hurd added, “Our entry into Argentina could be a significant move forward as we seek to expand Norseman’s commitment to becoming a premier silver exploration company.” He also based his confidence on the extensive experience the company’s team has gathered from working in Argentina, and in the Rio Negro province in particular.
Conclusion
Silver mining stocks and silver have broken major trendlines. The opportunity to get into good positions are becoming slimmer by the day. However….
Since small cap mining companies usually move up later than the large cap miners, you can still find some really good deals. So, if you are looking for a silver stock to buy right now, then it may be wise to consider Norseman silver.
Disclaimer: Please read our full disclaimer by clicking here. Statements regarding the Company which are not historical facts are “forward-looking statements” that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements. One Stock Weekly believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. This article shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. OneStockWeekly.com, is owned by LeadGopher LLC, which is being compensated to conduct investor awareness advertising and marketing campaigns for some of the companies it profiles. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy and compensation disclosure statement by clicking here.