PAAS vs. HL: Which Silver Mining Stock is the Better Buy Now?

By Madhurima Das – Yahoo! finance

Pan American Silver PAAS and Hecla Mining HL are well-known names in the mining sector that are engaged in the exploration, development and production of silver (as well as other metals like gold, lead and zinc).

Silver prices have gained 35% so far this year and are currently at $38.80 per ounce, near their highest levels since 2011, supported by bets on U.S. Federal Reserve policy easing. Gold prices have gained 28.5% year to date, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver demand is expected to remain strong from the industrial sector, the solar energy industry and electrical and electronic applications. Per the Silver Institute, the silver market is likely headed for another deficit in 2025 (for the fifth consecutive year), which bodes well for prices. The outlook for gold prices looks strong, backed by geopolitical tensions, central bank buying, as well as expanding industrial use in energy, healthcare and technology, which should continue to underpin prices.