Interresting article from stockhouse
September 19, 1997
Pennaluna Homepage
Yesterday we saw our first real mention in the general financial media of the quiet advance in silver
price we initially pointed out here in late August.
CNBC ran a spotlight piece about the possible shortage of COMEX silver for delivery against
December futures contracts, and the upward price pressures it is exerting. (COMEX silver
warehouse stocks have dropped over 53 million ounces since the first of the year.)
So the "stealth" recovery in silver is now a little more visible, and seems to be continuing. July 16 still
looks like the bottom. On that day, Handy & Harman spot silver was US$ 4.21. Despite a hit
earlier this week after Consumer Price Index (CPI) numbers came out, today silver stands at US$
4.70 -- a gain of 11.6% in the past two months.
If the price trend holds, it should give a big boost to the mining revival that's going on up here...
which is already getting some help from sharply rising prices for the lead and zinc that are
by-products of silver mining.
Despite slack silver prices, the major producers -- ASARCO, Coeur d' Alene Mines, Hecla
Mining, Sunshine Mining -- have continued to stir up new activity in the industry this year as they
bring new ore finds into production, expand and reopen mines, boost production, and put a tighter
and tighter squeeze on costs. Clearly, stronger prices should accelerate the positive developments.
Although silver's still slightly below where it started out the year, we've nevertheless seen quite a bit
of movement in some of the little junior silver stocks... mostly up, but some down too.
Here are a few examples. Atlas Mining (OTCBB : ALSM) at US$ .43 (bid) is up nearly 140% year
to date... Silver Trend (OTCBB : STRI) at about US$ .15 is up over 275% for the year... and
Merger Mines (OTCBB : MERG) has advanced 60%, to around US$ .21. Meantime, Vindicator
(OTCBB : VINS) has dropped 65%, to US$ .18... and Hunter Creek (OTCBB : HTRC) has fallen
around 30%, to US$ .09.
We've said it before, but we'll say it again: If you're interested in silver mining stocks, you should be
paying close attention these days. |
