Precious metals, like silver, have surged 160% in the past year due to geopolitical tensions and industrial demand. Investors are flocking to silver amid a multi-year shortage, with demand surpassing supply over the past five years and expected to continue until 2026.

First Majestic Silver, a traditional mining company, owns and operates mines in Mexico and the U.S., including the high-grade Los Gatos mine. It is a leveraged play on silver prices, with a fixed cost structure that benefits from increases in silver prices but is vulnerable to drops or rising mining costs.

Wheaton Precious Metals operates under a streaming model, providing up-front payments to mining companies in exchange for the right to purchase a percentage of the precious metals produced at a discounted price. This model protects against inflationary pressures and provides cost predictability for investors.

Investing in mining stocks like First Majestic or Wheaton Precious Metals depends on your goals. First Majestic offers potential upside as silver prices rise, while Wheaton provides a diversified portfolio of funded companies for more conservative investors seeking exposure to silver.

Consider the Motley Fool’s top 10 stock picks for potential high returns, excluding First Majestic Silver. The Motley Fool’s Stock Advisor has a total average return of 884%, outperforming the S&P 500, and offers a community for individual investors to access top stock recommendations.

Read more at Yahoo Finance: First Majestic vs. Wheaton Precious Metals