Endeavour and Coeur d'Alene Mines Look to Benefit From Rebounding Silver Prices
NEW YORK, NY -- (Marketwire) -- 06/12/12 -- 2012 has proven to be a tough year for both silver prices and silver mining stocks. The iShares Silver Trust ETF (SLV) has fallen over 16 percent in the last three months, while the Global X Silver Miners ETF (SIL) has dropped over 20 percent over the same period. The Paragon Report examines investing opportunities in the Silver Industry and provides equity research on Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) and Coeur d'Alene Mines Corporation (NYSE: CDE).
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"[T]he tendency to ease, lend more, rotate debt, bail out banks, and in extreme cases, print more Euros, are all options that policy makers will likely consider in the weeks ahead," stated INTL FCStone's Edward Meir. "Once the gold market picks up this scent, we suspect prices will likely move much higher. Silver will push up as well, riding on gold's coattails," he wrote in a client note.
Federal Reserve Chairman Ben Bernanke last week stated that they were prepared to take action if Europe's problems threatened the U.S. economy, but gave no hint of any immediate action. After performing a stress test on Spain's financial sector the International Monetary Fund estimates Spanish banks will require at least $50 billion in aid.
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Endeavour Silver is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted seven consecutive years of aggressive silver production and resource growth. The company recently reporter that exploration drilling at the San Sebastian property in Jalisco State, Mexico has discovered a new high grade silver-gold mineralized zone in the Terronera vein.
Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company built and commenced production from three wholly-owned, long-lived mines between 2008 and 2010: the San Bartolomé silver mine in Bolivia, the Palmarejo silver-gold mine in Mexico and the Kensington gold mine in Alaska. During the first quarter of 2012, silver production was 4.9 million ounces while gold production was 43,901 ounces, 19% higher and 17% lower, respectively, than a year ago.
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