| Silver Remains Bearish Owing to a Global Market Slump | |
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Why Pessimism Continues for Precious Metals (Continued from Prior Part) Retreating silver prices
Silver, like gold, is a preferred way to diversify a portfolio. Silver investments most likely correlate with gold counterparts. Currently trading at a six-year low, silver is set to end the 2015 year with downside returns. It may be the fourth down year in a row. Silver futures on COMEX, a commodity division of the New York Mercantile Exchange, lost 3.8% on its most actively traded contract. It closed at $14.54 with a day’s low of $14.47 per ounce. Silver has seen a year-to-date, or YTD loss, of 6.26%.
Miner carnage
Silver-backed ETFs that have fallen due to slipping silver prices include the Global X Silver Miners ETF (SIL) and the iShares Silver Trust (SLV). These ETFs have fallen by ~6% and 3.8%, respectively.
With the US economy stabilizing and inflation reaching the target 2% mark and lower unemployment, the Federal Reserve is expected to raise interest rates at the end of the year. Higher interest rates increase the yield on interest-bearing assets like bonds, which decreases the appeal of precious metals as silver, gold, and platinum. This could put additional short-term pressure on silver prices in 2015.
However, rising interest rates could be an indicator of economic growth that may boost silver prices in the coming year. Mining companies that may shine owing to improved silver prices include Pan American Silver (PAAS), Hecla Mining Company (HL), Silver Wheaton (SLW), and Coeur Mining (CDE). These four stocks’ share prices fell on Monday as silver retreated. PAAS, HL, SLW, and CDE gave up ~4.8%, 6.3%, 5.3%, and 6.8%, respectively. These stocks contribute ~8.3% to 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. |