| Could Gradual Hike Result in Gradual Loss for Precious Metals? | |
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Could Gradual Rate Hike Result in Gradual Loss for Precious Metals? (Continued from Prior Part) “Gradual” was the keyword
The FOMC (Federal Open Market Committee) emphasized the word “gradual” in reference to the rate hike. This emphasis may have likely buoyed precious metals, as they didn’t react very much to the Fed’s decision. Investors unanimously expected a fall in value assets like gold once the rates rose above zero. However, the fall didn’t occur, and gold added $15 to its previous day close, 1.4% higher at $1,076.8 an ounce on Wednesday, December 16.
Silver was the best-performing precious metal, as it surged 3.5% and ended at $14.3 per ounce. The volume in silver futures, however, remained significantly low compared to the previous trading days. Below is a chart that shows the three-month performance for silver. With the gain in silver, the RSI (relative strength index) rose from 28 to 43. A figure below 30 indicates a possible bounce back in the asset price.
The progressive stance of the Federal Reserve may result in a more gradual reaction from the precious metals in the coming days. Platinum and palladium gained 2.4% and 0.88% and closed at $876 and $572 an ounce, respectively.
Silver miners and ETFs
The hike in silver prices boosted the silver-based ETFs like the iShares Silver Trust (SLV) and the Global X Silver Miners ETF (SIL). These two indicators rose 2.9% and 3.7%, respectively, on Wednesday. Silver mining businesses like Silver Wheaton (SLW), Pan American Silver (PAAS), and Coeur Mining (CDE) all gained on the rise in silver prices. These three companies rose 2.5%, 6.4%, and 7%, respectively. Together these companies make up about 7% of the price fluctuations in the Market Vectors Gold Miners ETF (GDX).
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Pan American Silver Corp.
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PRODUCER |
CODE : PAAS |
ISIN : CA6979001089 |
CUSIP : 697900108 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Pan American Silver is a silver producing company based in Canada. Pan American Silver produces silver, copper, gold, lead and zinc in Argentina, in Bolivia, in Mexico and in Peru, develops gold and silver in Mexico, and holds various exploration projects in Argentina and in Mexico. Its main assets in production are QUIRUVILCA MINE, HUARON and MOROCOCHA in Peru, LA COLORADA, ALAMO DORADO, LLUVIA DE ORO and DOLORES MINE in Mexico, SAN VICENTE in Bolivia and MANANTIAL ESPEJO in Argentina, its main asset in development is LA PRECIOSA in Mexico and its main exploration properties are ORO BLANCO, EL DURAZNO, SAN ANTONIO ORO BLANCO, SANTA LUCIA, REAL VIEJO, PLANCHAS DE PLATA, LA DURA, LA RESERVA / EL CORREO, LA VIRGINIA GOLD/SILVER, LA CRUZ and LA BOLSA in Mexico, FLAMINGO, ESPEJO, REGALO, NAVIDAD, CALCATREAU, HOG HEAVEN, WATERLOO and LOMA DE LA PLATA (NAVIDAD) in Argentina, RIVER VALLEY PGM in Canada and PICO MACHAY in Peru. Pan American Silver is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 2.3 billions as of today (€ 2.0 billions). Its stock quote reached its lowest recent point on November 07, 2008 at US$ 10.01, and its highest recent level on March 28, 2024 at US$ 15.08. Pan American Silver has 153 176 265 shares outstanding. |