Silver Stocks Lose Luster as Industrial Demand Slows and Dollar Rises
The Bedford Report Provides Equity Research on ProShares Ultra Short Silver & Silver Standard Resources
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 10/03/11 -- September was not a kind month to Silver stocks, as a stronger dollar took away much of the metal's allure. Additionally, a slowing global economy has crimped industrial silver demand. The Bedford Report examines the outlook for companies in the Silver Industry and provides equity research on Proshares Ultra Short Silver (NYSE: ZSL) and Silver Standard Resources, Inc. (NASDAQ: SSRI) (TSX: SSO). Access to the full company reports can be found at:
Silver's dramatic September free-fall has been attributed to a weakening trend in the Asian region on speculation that European governments will find it difficult to contain the region's debt crisis and reverse gains registered by the US dollar against the euro, eroding the demand for precious metals as an alternative investment. Precious metals prices tend to move inversely to price of the dollar, as they lose their "safe haven" appeal.
Compounding the problems for silver stocks are heightened fears of a double dip recession. According to the Silver Institute more than 50 percent of Silver's use is industrial. With the economy slowing -- last week Citigroup cut their global gross domestic product forecasts for 2011 and 2012 as growth prospects "continue to deteriorate quickly" -- manufacturing use for silver could drop.
The Bedford Report releases stock research on the Silver Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.
Silver mining stocks -- which have underperformed silver prices all year -- are also struggling. "Concerns about a possible hard landing for the Chinese economy have weighed on mining stocks," David Jones, chief marketing strategist at IG Index, explains. "It is difficult to see a catalyst for further gains in the short term."
Silver Standard Resources Inc. engages in the exploration, development, and production of mineral resource properties in Argentina, Australia, Canada, Chile, Mexico, Peru, and the United States. Last month the company said that its Pirquitas mill was shut down due to a gearbox failure September 24, 2011. The process plant, excluding the ball mill, have since resumed at reduced levels processing high grade fines from the process water pond. Mine operations are unaffected and will continue to stockpile material at design rates.
The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at
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Datum: 03.10.2011 - 06:16 Uhr
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