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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (3832)	9/22/2001 4:54:10 AM
From: paul ross	Respond to of 8010

DJ Analyst Sees 'Silver' Lining In Volatile Market TORONTO (Dow Jones)--As investors file into the safety of gold stocks in a capitulating market, they shouldn't overlook the prospects for its silver cousin, an analyst said. "We anticipate that silver's going to run to some degree with gold," said Canaccord Capital analyst Graeme Currie. While the price of silver rose more than 12% in the week following the terrorist attacks in the U.S., Currie attributed the sharp move to short-covering. Though such volatility is expected to continue in the near-term, it's the commodity's fundamental supply and demand outlook that bodes well for long-term investors, he said. Not only does silver's precious-metal status make it a relatively safe investment in today's bear market, but the last 10 years has shown a consistent shortfall of supply, he said. Currie said that, according to the Silver Institute, the deficit between fabrication demand and conventional supply was more than 100 million ounces in 2000, and that trend can be traced through the last decade. At this rate, it's only a matter of time before demand requirements fail to be met, he said. As for the commodity price, Currie said he sees US$4.80 an ounce as the "fundamental and technical" resistance level. "If we break through that, I think we're really into a new bull for silver," he said. Further, while the majority of gold is used in jewelry, that's not the case with silver. Industrial appliations and photography accounted for about 610 million ounces in 2000, which is more than two-thirds of total demand, he said. Sprott Securities analyst George Topping said, "The trouble with silver is it's got quite a large photographic component to it, and with the recession that we're currently heading towards, you will see demand drop. That's the same with gold for jewelry." But the yellow metal, which has a larger and more liquid market, remains Topping's first choice because investment demand should pick up the slack, he said. The analysts also agree that there are few Canadian silver stocks to choose from. Currie's top pick is Pan American Silver Corp. (PAAS), a silver play with mines in Peru and Mexico. Corner Bay Silver Inc. (T.BAY) is his top junior silver recommendation. Because the market is "devoid of quality silver plays," Sprott's Topping suggests another option is to buy the commodity itself. Silver, for example, can be purchased in coin or bar form from certain banks. Since the terrorist attacks last week, Pan American Silver is up about 20% and Corner Bay up about 13% in Toronto. -Andy Georgiades, Dow Jones Newswires;