Here's Why Silver Stocks Rose Today
Investors are increasingly turning to precious metals as a hedge against a stumbling global economy. In the United States alone, over 36 million individuals have filed for unemployment benefits in the last two months, while retail sales tumbled 22% in April from the year-ago period. Those and a number of other economic statistics make it clear that a recession is on the way, which is driving demand for safe-haven investments such as gold and silver.
Investors might argue whether precious metals are really safe havens, but the reality that is gold and silver prices are trekking higher. An ounce of gold is worth 35% more today than this time last year. Silver has been a little more volatile, but prices are 9.5% higher now versus the year-ago period.
That's lifting many gold and silver stocks today, especially small-cap stocks representing businesses that could use a helping hand. At the close of trading on Friday, shares of Fortuna Silver Mines (NYSE: FSM) were up almost 18%. Shares of Endeavour Silver (NYSE: EXK) had jumped nearly 11%, while the stock of Hecla Mining (NYSE: HL) gained over 13% on the day.
Source Fool.com
