| Silver Lost Its Shine: Will It Impact Hedge Funds? | |
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Bullions Look Vulnerable as Investors Wait for Economic Data (Continued from Prior Part) Silver lost its shine
The returns on silver remain the best on a YTD (year-to-date) basis compared all of the other precious metals. However, silver became the worst-performing asset on a five-day trailing basis as of November 3. Silver has lost a whopping 6.4% in the last five trading days. That’s the biggest loss since July. The speculators boosted their net-long positions in silver futures and options to the highest since 2006 just before the US Fed signaled a rate hike in December. Silver futures for December delivery on COMEX, a division of NYMEX, closed at $15.30 per ounce on Tuesday, November 3, 2015. It’s the lowest level for silver in about one month.
Threat of a rate hike
The threat of higher rates after the October FOMC (Federal Open Market Committee) meeting sent ripples through precious metals market. As monetary policy tightening takes place, precious metals tend to lose their allure. They don’t bear any cash flows or interest like Treasuries.
Gold’s trading near its one-month low. Platinum fell for four straight days. While hedge funds investors were fortunate enough to pull back their bullish bets before the Fed’s hawkish stance, the silver bulls weren’t as lucky. Hedge funds likely picked the wrong time to build their bullish bets in silver. More than $380 million has been lost over the past week from the value of global exchange-traded products backed by silver.
Silver-backed ETFs like the Global X Silver Miners ETF (SIL) and the iShares Silver Trust ETF (SLV) fell 6.6% and 3.7%, respectively, on a five-day trailing basis. Silver mining companies that saw a fall in their prices in the past five trading days include Silver Wheaton (SLW), First-Majestic Silver (AG), and Pan American Silver (PAAS). Together, these companies account for 7.1% of the price changes in the Market Vectors Gold Miners ETF (GDX).
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Silver Wheaton
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 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. |