May 6, 2021, 10:16 am EDT
Stock Picks: There is no substitute for silver (AG)
When inflation arrives, precious metal is the one investment you need to keep in your portfolio. Both gold and silver are capable to fight inflation. The difference is that silver is more volatile than gold which means it could produce higher profits but also carry higher risk.
In the early stage of the precious metal rally, silver usually runs faster than gold because of both higher volatility and smaller market.
The selection of silver stocks is more important to focus on its technical aspects since commodity stocks are usually swimming together in one direction. Most of the commodity stocks are going to participate in the trend together. But, a better technical setup may give you some advantage on faster or better performance.
Among AG, PAAS, KGC, we pick First Majestic Silver Corp (AG) because of its descending triangle pattern. The breakout point is above 17 and sells stop is 15. It is located at an ideal entry point now around 15.75.