Silver prices declined in September after skyrocketing earlier this year. However, its price is rebounding on rising demand for the metal. And the passage of a bi-partisan infrastructure bill by Congress this week could boost the industrial demand for this metal. Given the favorable price trends, we think silver stocks Pan American Silver (NASDAQ:PAAS) and Silvercorp Metals (NYSE:SVM) might be ideal additions to one’s portfolio now. So, let’s evaluate these companies.Silver prices were trading at their highest levels earlier this year due to a Reddit-induced rally. However, prices declined to settle at $21.485 in September, their lowest level since July 2020, on indications of a forthcoming tightening of central bank monetary policy.
Analysts expect the metal’s demand to climb 15% globally this year to 1.03 billion ounces. Given silver’s heavy industrial usage and rebounding industrial activities, spot silver prices have bounced back to settle at $24.45 per ounce. The rally was driven by the passage of the b-partisan infrastructure bill this week, which is expected to bolster the demand for silver for electrical grids, WiFi, and electric vehicle charging stations. The iShares Silver Trust (NYSE:SLV) ETF has gained 8.1% over the past month versus the broader SPDR S&P 500 ETF Trust’s (SPY) 7.1% returns.
Given this backdrop, we think fundamentally strong silver stocks Pan American Silver Corp . (PAAS) and Silvercorp Metals Inc . (SVM) could be ideal bets now.