Economic Slowdown in China to Weigh on Silver Stocks
October 24 2011 - 8:16AM
Marketwired
Silver prices have been volatile of late as signs of a
strengthening US economy has pushed the dollar up, and taken away
the metal's safe haven appeal. Meanwhile, a slowing Asian economy
has led to concerns regarding industrial silver demand. The Paragon
Report examines investing opportunities in the Silver Industry and
provides equity research on Proshares Ultra Short Silver (NYSE:
ZSL) and Coeur d'Alene Mines Corporation (NYSE: CDE) (TSX: CDM).
Access to the full company reports can be found at:
www.paragonreport.com/ZSL www.paragonreport.com/CDE
In China, roughly 70 percent of the country's silver demand
comes from the industrial sectors. Chinese customs data recently
showed export growth falling last month more than expected, while
import growth also slowed. China's third-quarter gross domestic
product was up 9.1% from a year earlier, slowing from 9.5% growth
in the second quarter and 9.7% growth in the first, China's
National Bureau of Statistics said last week. Growth fell short of
the median 9.2% forecast of 14 economists surveyed by Dow Jones
Newswires.
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.
Silver mining stocks -- which have underperformed silver prices
all year -- are also struggling. "Concerns about a possible hard
landing for the Chinese economy has weighed on mining stocks,"
David Jones, chief marketing strategist at IG Index, explains. "It
is difficult to see a catalyst for further gains in the short
term."
Several marquee silver producers forecasted a drop in silver
prices and took necessary precautions such as selling several
mining sites. Many companies also increased hedging. Hedging
programs allow producers to lock in current silver prices for
future production, guarding against any potential price declines in
the future.
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above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
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