3 Top TSX Silver Stocks to Buy

Canadian investors should watch silver stocks for volatility on the Toronto Stock Exchange like Fortuna Silver Mines (TSX:FVI)(NYSE:FSM).

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The markets have been volatile with a Reddit army causing huge fluctuations in the stock market. Silver is now the next target. Making bets on these assets may be riskier than it’s worth.

Short-term gambling in the stock market isn’t the best idea. It certainly isn’t for those with weak stomachs or low cash balances. You can just as easily lose money at this game as you can make it.

Still, silver stocks are worth watching right now as the stock market becomes more dramatic. Here are three Toronto Stock Exchange silver stocks to put on your watch list.

Fortuna Silver Mines reluctant to release guidance

Fortuna Silver Mines (TSX:FVI)(NYSE:FSM) rose to a 52-week high of $12.61 at the beginning of the year after falling to a 52-week low of $2.05 after the sell-off in March 2020. Today, investors are trading the stock for $11.31 per share.

Fortuna Silver Mines extracts silver and gold in Latin American countries including Peru, Mexico, and Argentina. Fortuna reported production results for the fourth quarter and full year 2020 on January 19. The company is still reluctant to issue confident production guidance during the ongoing COVID-19 pandemic.

As one of the top TSX silver stocks by market capitalization, Canadian investors should watch Fortuna Silver Mines this week at least out of interest. The Reddit army seems set on causing further volatility. Even if you are wise enough to keep your money out of this battle, Fortuna Silver Mines should still be on your watch list.

Pan American Silver expects a 35% increase in silver production

Pan American Silver (TSX:PAAS)(NASDAQ:PAAS) rose from a 52-week low of $14.22 to a 52-week high of $53.30. As of Monday, investors are trading the stock for $46.12 per share. The annual dividend yield is small at 0.88%.

Pan American Silver extracts silver and gold in Canada, Mexico, Peru, Argentina, and Bolivia. Michael Steinmann, president & CEO, released production guidance for 2021 on January 19.

“We are expecting a 35% increase in silver production relative to 2020 and record gold production in 2021, despite our assumption that COVID-19 will continue to have an impact on operations. Under our 2021 guidance assumptions, we expect to be generating robust levels of free cash flow.”

Like Fortuna Silver Mines, Pan American Silver might be in for some volatility this week if the Reddit army succeeds with their plans to shake up precious metals stocks. If you don’t want to play with the speculators, that’s fine. But, keep this stock on your watch list in case things get too exciting not to watch.

Silvercorp Metals stock to report results on February 4

Silvercorp Metals (TSX:SVM)(NYSE:SVM) rose to a 52-week high of $11.62 from a 52-week low of $2.12. Now, investors are trading the stock for $9.54 per share. The annual dividend yield isn’t much at 0.38%.

Silvercorp Metals extracts silver, gold, lead, and zinc metals in China. Silvercorp will report Q3 Fiscal 2021 financial results on Thursday, February 4, 2021 after the market closes. On January 15, the silver company announced that it expects to meet the previous released annual production guidance of between 6.2 and 6.5 million ounces of silver.

If you don’t own Silvercorp stock, don’t worry. Still, Silvercorp has a good chance of getting caught up in the frenzy created by the Reddit army. So, if you want to at least watch finance history being made, then put Silvercorp on your watch list.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Debra Ray has no position in any of the stocks mentioned. 

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