Investor Holdings of Silver Through Exchange Traded Funds the Highest They Have Been in a Year
NEW YORK, NY -- (Marketwire) -- 10/18/12 -- Silver prices had an excellent third quarter, gaining as much as 25 percent, as stimulus measures announced from the European and the Federal Reserve have helped boost prices. The iShares Silver Trust ETF (SLV) has gained over 20 percent in the last three months. Five Star Equities examines the outlook for companies in the Silver Industry and provides equity research on Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) and Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAA).
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Bloomberg has recently reported that hedge funds are more bullish on silver then they have been in seven months. Data from the U.S. Commodity Futures Trading Commission have shown that since the end of June bets on rising prices has increased 10-fold. Investor holdings of silver through exchange traded-products during the third quarter totaled 717.2 metric tons, valued at $797 million, the most in a year according to data collected from Bloomberg.
"The recent announcements on the part of central banks really sparked the rally," said Peter Sorrentino of Huntington Asset Advisors. "Silver has now become a two-way play, getting bids both on industrial demand as well as a monetary hedge."
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Endeavour Silver is a premier mid-tier silver mining company focused on the growth of its silver production, reserves and resources in Mexico. For the third quarter of 2012 the company reported silver production increased 33 percent to 1,137,883 ounces and gold production increased139 percent to 11,754 ounces when compared to the year-ago quarter.
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 increased their third quarter dividend from $0.15 per share to $0.20 per share, an increase of 33 percent. For the second quarter of 2012 the company reported its second highest quarterly silver production in their history of 6.4 million ounces.
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