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the S&P/TSX Composite Index posted another triple-digit point increase to open the week of May 16. However, he still has plenty of ground to make up for the losses he has suffered so far in the spring. Investors should stay on their toes as rising interest rates and the threat of a recession push markets to the brink of a sharp correction. Today I want to look at precious metals stocks that could provide strong coverage in this environment. Below are three gold and silver stocks that deserve your attention in the second half of May.
This gold stock looks undervalued at the time of this writing
Back in March, I discussed gold’s recent rally above the US$2,000 per ounce mark. It was the first time the yellow metal had reached this milestone since the first half of 2020. Several years ago, it seemed like cryptocurrencies were able to challenge precious metals like gold and silver as legitimate safe haven. The collapse of the crypto market in 2022 apparently extinguished this debate.
Investors looking for an undervalued gold stock may want to consider NovaGold Resources (TSX:NG)(NYSE:NG). This Vancouver-based company is engaged in the exploration and development of gold mining properties in the United States. Shares of this gold stock fell 18% in 2022 as of the May 16 close.
The company released its first quarter 2022 results on April 5. Its net loss worsened to $9.99 million from $7.95 million the previous year. Shares of this gold stock currently have an RSI of 25, which puts this stock in technical oversold territory.
Here are two silver stocks to consider as volatility rises in 2022
Investors shouldn’t sleep on silver in the first half of the 2020s. However, the spot price of silver has remained virtually flat since its peak during the 2020 precious metals bull market.
Majestic First Silver (TSX:FR)(NYSE:AG) is another Vancouver-based company that is engaged in the acquisition, exploration, development and production of mineral properties with an emphasis on the production of gold and minerals. ‘money. Its shares have plunged 25% in 2022 at the time of this writing. The stock is down 50% year over year.
In the first quarter of 2022, First Majestic reported revenue growth of 56% to $156 million. Meanwhile, mining operating profits have more than halved in the year-over-year period. This stock had an RSI of 27 at the time of this writing, which puts Majestic Silver in oversold levels.
Silvercorp Metals (TSX:SVM)(NYSE:SVM) is another top Vancouver-based silver stock. It owns and operates mining properties in China and Mexico. Silvercorp shares are down 26% so far in 2022.
Investors can expect to see the last batch of fiscal 2022 results from this company on May 26. Its production rates have increased well over the previous year. This silver stock currently boasts a favorable P/E ratio of 14. It last had an RSI of 31, placing it just outside of technically oversold territory.