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To: ms.smartest.person who wrote (1284)	7/30/2006 10:42:35 PM
From: ms.smartest.person	Respond to of 3198

Trio of Canadian silver companies get thumbs up ALLAN ROBINSON The price of silver could rise about 40 per cent over the next 18 months, and investors should buy shares in three Canadian silver companies that will benefit as the commodity catches up in price with the other precious metals, according to UBS Securities Canada Inc. For investors who like gold, and believe the U.S. dollar will weaken, North American silver producers could be a good bet, UBS analyst Craig West says. But expect volatility, because the silver market is substantially smaller than either the gold or base metal markets, and that can lead to exaggerated swings up or down, he said. In a report to clients, Mr. West recommended Silver Wheaton Corp., Pan American Silver Corp. and Silver Standard Resources Ltd. as "buys." Silver traded yesterday at $11.05 (U.S.) an ounce, down from $15.20 reached in May after it had been driven up by speculation that approval of a new silver exchange traded fund (ETF) launched in April would increase investment demand and buoy prices. A year ago, silver traded at about $7 an ounce. UBS forecasts that silver will average $15 an ounce in 2007. Silver Wheaton shares rose 39 cents yesterday to close at $10.47 (Canadian) on the Toronto Stock Exchange. UBS has a 12-month share price target of $12.50. Silver Wheaton buys silver produced as a byproduct from mines at a set contract price and sells it to smelters at the market price. Goldcorp Inc. owns a 57-per-cent interest in the company. Pan American plans to double its silver output by 2009 from 12.5 million ounces in 2005, according to UBS. The shares gained 90 cents to $19.761 yesterday on the TSX. UBS has a price target of $24.75 (U.S.) on its U.S.-traded shares, which were changing hands at $17.32 on the Nasdaq Stock Market. Silver Standard's mining properties are estimated to have more than one billion ounces of silver resources, although it does not have any producing mines. Its shares climbed $1.09 (Canadian) yesterday to $22.33 on the TSX. UBS has a $24 (U.S.) target price for the company's Nasdaq-traded shares, which rose 99 cents to $19.60. Historically, gold and silver have traded at an average price ratio of 50-1, but silver has recently underperformed gold, according to the report. The ratio is currently about 56-1. theglobeandmail.com