Tuesday, April 12, 2011

Endeavour Silver (EXK) (AXU) (SSRI) Plunge as Investors Take Profits

Silver prices jumped again Monday after soaring for several days, but that wasn't enough for silver companies like Endeavour Silver (AMEX:EXK), Alexco Resource (AMEX:AXU), Silver Standard Resources (SSRI), which found themselves plunging in price in what appears to be some profit-taking by investors.

On Monday silver prices closed at $40.68 an ounce after rising to as high as $41.93 before pulling back.

Most of the recent surge in silver prices has been centered around the unrest in the Middle East, collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe and deepening inflation and consequences of the Japanese earthquake are just some of the negative factors hitting the markets. Investors have been trading silver as an alternative to gold, although silver is approaching levels where it will start being considered expensive.

In other words, the recent upward price movement in silver is from its consideration as being an investment metal and not its industrial uses.

Endeavour Silver closed Monday at $11.40, falling $0.97, or 7.84 percent. Alexco Resource closed at $9.05, down $0.73, or 7.46 percent. Silver Standard Resources closed at $34.01, dropping $1.07, or 3.05 percent.

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