Operation Twist Halts the Silver Bull Market
September 26 2011 - 8:16AM
Marketwired
The Paragon Report examines investing opportunities in the Silver
Industry and provides equity research on iShares Silver Trust
(NYSE: SLV) and Silvercorp Metals, Inc. (NYSE: SVM) (TSX: SVM).
Access to the full company reports can be found at:
www.paragonreport.com/SLV
www.paragonreport.com/SVM
Silver stocks took a sizeable hit following the Federal
Reserve's "Operation Twist" announcement. The theory behind
'Operation Twist' is quite different than the quantitative easing
measures that supported the monumental run of precious metals
prices. In the aftermath of the announcement, the US Dollar shot
up. Precious metals prices tend to move inversely to price of the
dollar, as they lose their "safe haven" appeal.
Silver is not only a precious metal. According to the Silver
Institute more than 50 percent of Silver's use is industrial.
Silver can be used for batteries, brazing and soldering, bearings
and high-end electronics and is also used in cutting edge solar
technology. With the global economy teetering on the brink of a
double dip recession, manufacturing use for silver may come
down.
The Paragon Report provide investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on the silver industry register with us free at
www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
Silvercorp Metals has garnered significant attention this month.
The Rosen Law Firm, P.A. announced that it is investigating
potential securities fraud claims against Silvercorp Metals
resulting from allegations that the Company may have issued
materially inaccurate financial statements to the investing public
between June 8, 2009 and September 13, 2011. Silvercorp vehemently
refutes any substance in the allegations. After the stock took a
sizeable hit, the Company said last week that its shares are
undervalued and that it is pushing ahead with its share repurchase
plan.
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