Summing up that position, Bloomberg's Olivia Sterns said that as silver trades in contracts of $5,000, Horwitz would make $37,500 if the metal does ultimately behave as he expects, jumping from $17.50 to $25 — certainly nothing to sneeze at.What about companies? Of course, not all investors are interested in buying silver itself. And while it can be difficult to identify which companies are set to prosper given today's low prices, there are certainly some options. Silver Wheaton (TSX: SLW,NYSE:SLW), the world's largest precious metals streaming company, is perhaps the most oft-cited example of a successful silver company, and it's easy to see why. As a recent article by Seeking Alpha contributor Joseph Harry states, the company has a slew of positive factors going for it, including the fact that it "tends to outperform physical silver historically" and provides investors with "minor exposure to gold." It doesn't hurt that Randy Smallwood, the company's CEO, recently went on the record to say that today's poor price environment isn't a problem for streaming companies. "In having to deal with cost inflation and price deflation, it is tough to be a mining producer right now, but streaming companies still maintain very healthy margins," he said. Similarly, Jorge Ganoza, president and CEO of Fortuna Silver Mines (TSX:FVI,NYSE:FSM), said last week that silver's current low price won't be a problem for his company. "We're quite confident our mines are resilient to lower silver prices," he said, adding, "San Jose is a mine that can operate below $10. Our cash costs at that mine are $4." That's not to say those are the only options. Responding to Harry's article, another Seeking Alpha contributor, SomaBull, suggests that First Majestic Silver (TSX:FR,NYSE:AG) and Endeavour Silver (TSX:EDR,NYSE:EXK) are also good choices. That's because like Silver Wheaton, "they are growing their production at a very rapid pace." Expanding on that statement, SomaBull states that the two companies "have had a tremendous amount of production growth (200%-300%) to overcome ... costs increases" and as a result "have been able to perform even better than Silver Wheaton."
The upshotAll that is to say that while silver may be down, it's certainly not out. And for investors still willing to take a chance on the metal, now may be the time to jump in. Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. Related reading: ETPs a Bright Spot in the Silver Space
Take Heart, Silver Bugs — It's a Great Time to Buy from Silver Investing News