Monday, November 15, 2010

Endeavour (AMEX:EXK), Silver Standard (NASDAQ:SSRI), Mag Silver (AMEX:MVG) All Down on China Inflation Concerns

Endeavour Silver (AMEX:EXK), Silver Standard Resources (NASDAQ:SSRI),
Mag Silver Corp. (AMEX:MVG) were all punished on Friday when China's consumer price index (CPI) came in higher than expected, increasing to 4.4 percent.

Silver and gold prices all fell significantly as speculation China may battle their inflation by implementing higher interest rates drove down commodities, especially most metals.

Silver for December delivery finished at $25.94 an ounce, while Gold for December delivery ended at $1,365.50 an ounce. Copper for December delivery ended the session at $3.89 an ounce. The record for silver is $50.35, attained in 1980.

The reason silver prices took it hard is it's being considered an alternative to currency, just like gold is. Silver has the dual purpose of being an industrial metal and an investment metal. Investment is driving the price more at this time, so it'll respond similar to gold does in the current economic environment.

Concerning Pan American Silver Corp., they closed Friday's trading session at $36.78, losing $1.47, or 3.84 percent. Endeavour Silver ended the trading day at $6.12, dropping $0.18, or 2.86 percent. Silver Standard Resources closed at $25.51, falling $0.93, or 3.52 percent.

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