Wednesday, April 27, 2011

Silvercorp (SVM) (FVITF) (MGN) (SLW) Close Down as Silver, Gold Routed

Silver took a beating Tuesday. After setting records for seven out of the last eight trading sessions. Silver closed Tuesday almost 10 percent below Monday's intraday record $49.820, as Silvercorp Metals Inc. (NYSE:SVM), Fortuna (OTC:FVITF.PK), Mines Management (AMEX:MGN) and Silver Wheaton (NYSE:SLW) closed down.

Gold prices closed down Tuesday from records set the previous trading session, temporarily falling below the important $1,500 level at one point, but the losses in the yellow metal were subdued.

On the other hand, silver futures plunged Tuesday as investors took profits from record prices as uncertainty over the Federal Reserve policy decision coming up could have an adverse effect on the metals' unprecedented rally.

There is some wariness by some on how the Federal Reserve might respond in light of recent signs of higher food and energy prices.

Silver took a beating Tuesday. After setting records for seven out of the last eight trading sessions. Silver closed Tuesday almost 10 percent below Monday's intraday record $49.820.

The most actively traded silver contract, for May delivery, fell $2.099, or 4.5%, to settle at $45.050 a troy ounce on the Comex division of the New York Mercantile Exchange. Front-month April silver lost $2.093, or 4.4 percent, to finish at $45.058.

Most-active Comex June gold was down $5.60, or 0.4 percent, to settle at $1,503.50 a troy ounce while the nearby April contract fell $5.60, or 0.4 percent, to end at $1,503.00.

Gold trading near $1,500 an ounce has increased buying in silver as a less expensive alternative.

Silver Wheaton closed Tuesday at $39.17, falling $1.86, or 4.53 percent. Mines Management ended the day at $2.65, down $0.10, or 3.64 percent. Fortuna Silver closed the session at $5.59, dropping $0.57, or 9.30 percent. Silvercorp Metals Inc. closed at $13.20, declining $0.69, or 4.97 percent.

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