Wednesday, April 6, 2011

Silver Wheaton (SLW) (SLV) (PAAS) (HL) Jump on Soaring Silver Prices

Silver prices soared to another 31-year high Tuesday, gaining 69 cents, or 1.8 percent, to $39.18 an ounce. Silver companies like Silver Wheaton (NYSE:SLW), Pan American Silver (NASDAQ:PAAS) and Hecla Mining (NYSE:HL) all climbed with the surge in silver prices, as did iShares Silver Trust (NYSEArca:SLV).

Most of the rise in silver prices is attributed at this time to investment rather than industrial demand, and that is expected to continue for some time, with the probability of the lasting throughout the next decade.

In the short term, expectations are silver will probably move past $40 and ounce and pull back afterwards.

That wouldn't be surprising even with strong demand, as silver has been historically more volatile than gold, and will probably continue to perform in that manner, especially when investment demand is the key driver.

iShares Silver Trust closed Tuesday at $38.34, gaining $0.76, or 2.02 percent. Silver Wheaton closed at $45.94, rising $1.84, or 4.17 percent. Pan American Silver ended the session at $40.06, increasing $1.42, or 3.67 percent. Hecla Mining rose to $9.53, up $0.40, or 4.38 percent.

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