Up 203% this year, 4 reasons to buy the dip on this ASX silver share today

A leading expert forecasts more outperformance ahead for this surging ASX silver miner. Here's why.

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Key points

  • Unico Silver shares have surged 202.5% since the start of the year, driven by an 80% increase in silver prices.
  • Medallion Financial Group's Philippe Bui sees Unico Silver as a prime opportunity due to its extensive resource base and the ongoing demand in green technologies.
  • Unico Silver's latest quarterly update highlights two new discoveries and substantial drilling success, positioning it well in the thriving mining district of Argentina.

ASX silver share Unico Silver Ltd (ASX: USL) has been enjoying heady tailwinds from the rocketing silver price and its own exploration successes this year.

Currently trading for US$52.04 per ounce, the silver price is up a remarkable 80% year to date.

And that's helped send the Unico Silver share price up 202.5% since 2 January.

That's despite today's sharp retrace.

Unico Silver shares are changing hands for 60.5 cents apiece during the Monday lunch hour, putting the ASX silver share down 9.7% from Friday's close.

That selling looks to be spurred by a retrace in precious metals prices over the weekend, with the silver price down 4.1% today from Friday's all-time highs of US$54.24 per ounce.

But if Medallion Financial Group's Philippe Bui has it right, today's dip could be an opportune time to buy the miner (courtesy of The Bull).

Why this ASX silver share could keep on giving

"Unico Silver is our high conviction choice for silver exposure on the ASX," said Bui.

Commenting on the first reason you may want to buy the ASX silver share today, he said:

With a silver equivalent resource of more than 160 million ounces at its Cerro Leon and Joaquin projects in Argentina amid undertaking a major new drilling campaign, the company is primed for rapid resource growth and offers re-rating potential.

Then there's the ongoing silver bull market.

"Demand for silver is soaring on the back of solar, electrification and green technology trends, giving USL appealing leverage to a rising commodity," Bui said.

As for the third reason Unico Silver could keep on giving, Bui said, "USL is well funded and managed and operates in a proven mining district. Unico combines scale, exploration momentum and strategic upside.

Connecting the dots on the ASX silver share, Bui concluded, "At current levels, it offers attractive exposure to further movements in silver markets."

What's the latest from Unico Silver?

The latest quarterly update from Unico Silver was released on 30 July.

Over the three-month period, the ASX silver share reported continued drilling success across both its Joaquin (63 holes for 9,009 metres) and Cerro Leon (65 holes for 9,143 metres) projects in Argentina.

Commenting on the quarterly results on the day, Unico Silver managing director Todd Williams said:

With nearly 20,000 metres drilled across Cerro Leon and Joaquin, we delivered two new discoveries, strong infill results, and multiple zones of oxide and sulphide mineralisation across both projects.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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