Silver Stocks Volatile as Analysts Warn of Potential Oversupply
January 13 2012 - 8:20AM
Marketwired
Silver prices have been on the upswing this month despite a
stronger greenback and positive economic data from the US. The
silver market remains highly volatile, however, as the year-long
trend of high silver prices has caused a surge in the supplies of
silver scrap from recycling and other sources - leading some
analysts to warn of a possible oversupply. The Paragon Report
examines investing opportunities in the Silver Industry and
provides equity research on Hecla Mining Co. (NYSE: HL) and Coeur
d'Alene Mines Corporation (NYSE: CDE) (TSX: CDM). Access to the
full company reports can be found at:
www.paragonreport.com/HL
www.paragonreport.com/CDE
A recent report issued by Silver Investing News says that silver
production was expected to increase by 30 million ounces in 2011
and by a similar amount this year. Production from recycling has
been on the rise and is expected to continue in 2012. According the
report, "Silver is a commodity in surplus and there is little
indication that will change anytime soon."
TD Securities warns that silver prices could be weighed down
this year due to an oversupply. "In the past, silver's industrial
side has generated deep corrections for the white metal and we
don't expect it will be much different this time around, with a
correction to materially below $25/oz entirely possible," TD
Securities writes.
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.
Earlier this week Hecla Mines, the largest US-based Silver
producer, cut its 2012 production forecast because its Lucky Friday
mine may be shut all year. Hecla said it now expects to produce
about 7 million ounces of silver in 2012. The company forecast more
than 9.5 million ounces this year in late December.
Coeur d'Alene Mines Corporation, together with its subsidiaries,
engages in the ownership, operation, exploration, and development
of silver and gold mining properties located primarily in South
America, Mexico, the United States, and Australia.
The Paragon Report has not been compensated by any of the
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