Silver Stocks Struggle as Silver Hits New 19-Month Low
NEW YORK, NY -- (Marketwire) -- 06/26/12 -- Silver stocks have struggled in 2012 amidst growing concerns of a global economic slowdown. Around 50 percent of silver's demand comes from industrial uses, which has suffered significantly from the euro-zone crisis. The Global X Silver Miners (SIL) has fallen over 18 percent in the last three months, while the iShares Silver Trust ETF (SLV) has fallen over 16 percent over the same period. The Paragon Report examines investing opportunities in the Silver Industry and provides equity research on Coeur d'Alene Mines Corporation (NYSE: CDE) and Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAA.TO).
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Silver prices last Friday hit a new 19-month low as both industrial and investment demand for the precious metal has slowed. Silver for July delivery settled at $26.661 per troy ounce Friday, the lowest since November of 2010. The recent decision by the Federal Reserve to not pursue aggressive stimulus measures has reduced investment demand for safe havens, gold and silver. "In light of silver industrial demand slowing down and investment demand failing to plug the gap, it is the precious metal most vulnerable on the downside," Barclays' Suki Cooper said in a note.
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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. Shares of the company have dropped nearly 27 percent over the last three months.
Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company by increasing its low cost silver production and silver Mineral Reserves. The Company has seven operating mines in Mexico, Peru, Argentina and Bolivia, including the recently-acquired Dolores gold/silver mine in Chihuahua, Mexico. Shares of the company have fallen over 20 percent in the last three months.
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