Silver Stocks Soaring -- Is There Still Room to Run?
The Bedford Report Provides Analyst Research on Hecla Mining & Coeur d'Alene Mines
Mar. 9, 2011 (Marketwire) --
NEW YORK, NY -- (Marketwire) -- 03/09/11 -- The price of silver has been on the upswing in recent weeks as unrest in the Middle East has led investors back into the precious metals market in order to avoid currency fluctuations.
Silver is an interesting investment opportunity as it can be considered both a precious metal and an industrial metal. Besides jewellery, ornaments and utensils, silver is also used in electrical contacts and conductors, in mirrors and in catalysis of chemical reactions.
The Bedford Report examines the outlook for the Silver Market and provides research reports on Hecla Mining Co. (NYSE: HL) and Coeur d'Alene Mines Corporation (NYSE: CDE). Access to the full company reports can be found at:
www.bedfordreport.com/2011-03-HL
www.bedfordreport.com/2011-03-CDE
Industrial demand for silver continues to surge, particularly in emerging markets due to new technologies in solar energy, water purification and medical instruments. China's industrial silver demand has more than doubled in the last decade due in part to the nation's surging electronics industry. China was a net exporter of silver for many years but by 2007 the country had become a net importer of the metal.
On Monday, the price of silver flirted with 31 year highs of $35.86 an ounce. Since the end of 2009, the metal's price has surged more than 110 percent, leading some analysts to argue prices have peaked. These concerns have led many producers to increase hedging. Hedging programs allow producers to lock in current silver prices for future production, guarding against any potential price declines in the future.
Coeur d'Alene Mines, however, says it does not plan to hedge its output. The company's CEO Dennis Wheeler recently said Coeur d'Alene wants their investors to "be able to maximise their investment and leverage to the metal." Coeur d'Alene Mines expects to increase silver output to as much as 20-million ounces this year.
