Tuesday, April 19, 2011

Hecla (HL) (SSRI) (ISVLF) (MGN) Close Down Even as Silver Prices Surge Again

Even though silver prices traded at another 31-year high on Monday, that wasn't the direction for most silver companies, as Silver Standard Resources (NASDAQ:SSRI), Hecla Mining (NYSE:HL), Mines Management (AMEX:MGN) and Impact Silver (OTC:ISVLF.PK) all closed down on the day.

Silver prices for May delivery rose 38.5 cents, or 0.9 percent, to settle at $42.956 an ounce. Silver traded in a range from $42.200 to $43.560 — again its highest level in 31 years.

U.S. gold futures for June delivery settled up $6.90 an ounce at $1,492.90.

The sovereign debt crisis in Europe continues to push up silver prices, as the euro and U.S. dollar face pressures on out-of-control government spending and refusal to make meaningful spending cuts.

Global inflation and unrest in the Middle East are also major factors in the silver price equation, as investors put money in the precious metal as a gold alternative.

As to why most silver miners have been pulling back, much of that is based on the fact the majority of the miners are based in Canada, and so the weaker U.S. dollar as it relates to the Canadian dollar is a major factor a lot of investors in silver companies don't take into account.

Impact Silver closed Monday at $2.47, dropping $0.16, or 5.99 percent. Mines Management closed at $2.63, falling $0.08, or 1.60 percent. Hecla Mining ended the day at $8.86, plunging $0.75, or 7.80 percent. Silver Standard Resources closed at $33.49, losing $0.31, or 0.92 percent.

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