Blog > Gold and Resources > Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down
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Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down

Today's Financial News - Posted January 21, 2010

The list reads like wind chills in Chicago on a cold winter day: Coeur d’Alene Mines Corporation (NYSE:CDE), Silver Wheaton Corp. (NYSE:SLW), Alto Group Holdings Inc. (OTC:ALTO), Hecla Mining Company (NYSE:HL), Endeavour Silver Corp. (AMEX:EXK) all close down dramatically for a second day. What to do now?

by J. Christoph Amberger

Baltimore, MD: The price decline in metals stocks — and especially silver miners — continued on Thursday.

Coeur d’Alene Mines Corporation (NYSE:CDE) closed down another -6%;

Silver Wheaton Corp. (NYSE:SLW) down -7.26%;

Alto Group Holdings Inc. (OTC:ALTO) down -11.63%;

Hecla Mining Company (NYSE:HL) down -8.89%;

Endeavour Silver Corp. (AMEX:EXK) down -6.57%.

Some of them (HL and SLW) are currently showing mildly bullish aftermarket activity. Some have reported, or are about to report, record crops of silver. EXK, for example, announced on Jan 14. that it set a new record for silver production in Q4, 2009, up 12% quarter-on-quarter to 779,345 oz silver. (Gold production also jumped to a new quarterly high, up 90% to 4,591 oz gold in Q4, 2009.)

Looking at the price charts, it bears pointing out that, apart from volatile penny shares such as ALTO, most silver stocks haven’t fallen past their quite high early-January levels — despite substantial corrections.

I see no imminent change in U.S. monetary policy: Interest rates will continue to be low — reducing the comparative opportunity cost of owning precious metals. Neither will there be a let-up in the push of green technologies, many of which could boost industrial silver demand.

The next few days may be a good chance to stock up on silver shares — maybe with a hedged “insurance policy” short or long-term put option on iShares Silver Trust (ETF) (NYSE:SLV).

My favorite silver portfolio constellation is:

Well, just click through to my blog!


Next Article: Steepest drop since Feb. 2009: Here we go again!

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Posted by J. Christoph Amberger · Filed Under Gold and Resources 

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One Response to “Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down”

  • Klaus Foehre Says:
    January 25th, 2010 at 12:28 pm

    The Silver Market in the moment is manipulated to the south.
    Weaker hands should sell and strong groups will buy at a lower price again.
    Silver has a great future. There is not enough silver for this market.

Your comments are welcome