| Silver Loses Its Shine as the Fear of a Rate hike Looms | |
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Exploring the World Gold Council's Demand Reports (Continued from Prior Part) Near the two-month low
Silver futures traded on COMEX are hovering at their two-month low prices. The trading price of silver has been around $14.2 to $16.2 since the past one month. Silver fell 11.1% on a trailing-30-day basis. The market slump has added to the loss of industrial demand. The precious metal seems to be doubly-whipped by the slack in industrial demand and the nearing of the Federal Reserve’s rate hike.
The rising of the interest rates may make precious metals lose their shine as they are non-interest-bearing. The potential liftoff has led o fall in all the precious metals.
Silver fell in nine of the previous ten trading sessions. This has been the longest losing streak since 1950. Prices are near their lowest point since they touched their six-year low in August 26.
Miners carnage
Money managers and hedge funds seem to have curbed their holdings in silver, thus ending the most bullish sentiment seen since 2006. The silver mining companies have also gone through a carnage in their stock prices. Companies like First Majestic Silver (AG), Silver Wheaton (SLW), and Pan American Silver (PAAS) fell substantially on a 30-day trailing basis, mainly owing to the retreating prices. These three stocks together contribute 7.1% to the price fluctuations in the Market Vectors Gold Miners ETF (GDX).
Silver-backed ETFs like the ProShares Ultra Silver ETF (AGQ) and the iShares Silver Trust (SLV) fell 21.4% and 11.1%, respectively, on a 30-day trailing basis.
The most likely reason for the fall in the prices of all the precious metals is the strengthening US dollar. As the metals are priced in dollars, they become more expensive for the buyers of other currencies and plummet.
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Silver Wheaton
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 12.6 billions as of today (US$ 9.2 billions, € 8.4 billions). Its stock quote reached its lowest recent point on March 09, 2007 at CA$ 10.01, and its highest recent level on May 15, 2017 at CA$ 28.53. Silver Wheaton has 441 520 000 shares outstanding. |