Gold and silver have always held their value against inflation, but the significance of this is often overlooked by investors. While the dollar declines in purchasing power every year, a silver dollar is worth over 13 dollars today. When a stock's value rises, and profits are taken, inflation takes a bite of the return. For investors with concerns about storing physical silver, silver stocks are the next best thing.
Great Panther Resources (TSX: GPR)
Great Panther owns two working mines in Mexico that have steadily increased their output since 2006. In 2008, the company doubled its production from the 600,000 ounces it extracted in 2006. In 2009, the company anticipates a 25 percent increase in output and 2010 looks even brighter, with a projected jump to 2.8 million ounces.
Silver Standard Resources (NASDAQ: SSRI)
Silver Standard is active throughout the world, with 16 exploration, or production, projects. Its recently opened Pirquitas mine is projected to produce three million ounces of silver in 2009, and to triple production, to 10 million ounces, when the company reaches full capacity in 2010.
Fortuna Silver Mines (TSX-V: FVI)
Although Fortuna Silver is a small operation, with two primary mines, silver production at their Caylloma mine went up by 79 percent in 2008, to an output of 860,000 ounces. In 2009, the company is expecting another boost in production to 1.6 million ounces. The San Jose project, another mine, is still under development, but its projected to produce 3.5 million ounces a year when it opens in 2011.
Endeavour Silver (AMEX: EXK)
Endeavor Silver has two high-output mines in Mexico. The company increased silver production seven times in the last four years, to a high of 2.3 million ounces in 2008. In 2009, Endeavor Silver is expecting to boost output by another 17 percent, and the company anticipates reaching a capacity of 4.5 million ounces in the coming years.
First Majestic Silver (TSX: FR)
First Majestic's three operational mines in Mexico, produced 3.7 million ounces of silver in 2008. The company plans to ramp up production to 4.5 million ounces in 2009, an increase of 22 percent.
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