Tuesday, April 26, 2011

Silvercorp (SVM) (GPL) (SLW) Close Down as Silver Closes in on All-Time Record

Silver and gold prices are continuing their upward move, even as silver miners Great Panther (AMEX:GPL), Silver Wheaton (NYSE:SLW) and Silvercorp (NYSE:SVM) all closed down, with investors taking some profits as the white metal continued its upward run.

Investors all also getting increasingly nervous at the rate the precious metals are rising, giving pause as prices continue to hit all-time highs in the case of gold, and 31-year highs in the case of silver, as silver continues to push toward breaking its all-time high of just over $50 an ounce.

Gold closed at a new high, jumping $5.30 to settle at $1,509.10 an ounce at the Comex division of the New York Mercantile Exchange. Gold had ended the session above $1,500 for the first time last Thursday.

Today's Gold trading had the Globex June Gold contract trading at $1519.20 before a profit taking sell-off mid to latter part of the trading session.

Silver prices soared to a 31-year high again, settling at $47.15, up $1.09 for the day, or 2.4 percent. April silver futures in New York traded as high as $49.10 an ounce but dropped to close at $47.15 mark.

The more active May silver contract jumped just shy of the $50 level, trading as high as $49.82 before falling back.

An incredible number of silver and gold contracts were sold Monday, reaching 109,000 for gold and 199,000 for silver. Silver prices were volatile, moving in a $4.18 range.

Most of this is because of the collapsing U.S. dollar, tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake.

The DXY index of the U.S. dollar's value against a basket six other major currencies fell 0.2 percent to 73.99, its lowest level since August 2008. It's down 6.4 percent so far in 2011.

No comments: