Silver at $19.22 by end of 2010

[FiftySense]

Silver stocks have been performing well recently thanks to a run-up in silver spot prices, which have risen about 5.1% on the New York Mercantile Exchange over the past month. In comparison, gold spot prices have increased only by about 2% over this period.

Silver is currently trading at $18.12 an ounce for spot delivery on Nymex. Some metal experts believe that $16.50 is a good support level and expect silver prices to touch $20 in the near future. Silver spot prices on Nymex are expected to reach $19.22 an ounce by the end of 2010, according to analysts polled by Bloomberg.

Our preferred silver stocks Silver Wheaton (SLW), and Pan American Silver(PAAS) registered handsome gains of 12.2% and 9.5%, respectively, over the past month. On the other hand, the other major silver producers, Hecla Mining TICKER TYPE=''EQUITY" SYMBOL="HL"/>(HL) and Silver Standard Resources (SSRI) gained 7.1% and 10.2%, respectively.

Over the past month, small-cap silver producers, Mag Silver (MVG) and Alexco Resource(AXU) jumped 12.4% and 18%, respectively. The appreciation in these silver stocks compares favorably with the NYSE composite index, which advanced 3.5% over the past month.

The only exception was Endeavour Silver (EXK) which declined 4.2% after the company missed earnings consensus last month when it announced fourth-quarter earnings. The lower earnings were mainly attributed to higher total cash costs at Guanajuato mines, one of the company's two proven silver reserves. The company plans to invest $29 million in these mines during the first half of 2010. During the second half of 2010, the Guanacevi and Guanajuato mines are anticipated to unfold their full production capabilities.
Silver Wheaton Remains Our Top Pick

Analysts estimate that Silver Wheaton's targeted annual production of more than 40 million ounces by 2013, after the Pasuca Lama mine acquired from Barrick Gold (ABX) starts production-- will place the company among the world's top silver producers. BHP Billiton(BHP) is the world's leading silver producer with 42.3 million ounces of output in 2008, as reported by the Silver Institute.

At $17.33, Silver Wheaton is trading at a price-to-earnings ratio of 23.7. Sales are projected to soar 79.7% to $437 million during 2010 from $243 million in 2009, according to analysts polled by Bloomberg, while earnings before interest, taxes, depreciation and amortization is likely to zoom 104.5% to $247.3 million from $162.7 million during this period. Silver production is expected to increase 35% this year, led by the acquisitions of Silverstone Resources' and Barrick Gold's silver mines in May and September 2009, respectively.

[Trinity]

Silver spot prices on Nymex are expected to reach $19.22 an ounce by the end of 2010, according to analysts polled by Bloomberg.

You would be one lucky skunk if you were able to buy Silver for a price like that by the end of the year.Twenty five dollars is more reasonable.

[1970 Silver Art]

My gut feeling says that the DOG will be at $23 (or more) on December 31, 2010.

[Steal]

I was actually still waiting (sittin on the friggin fence) for $15 silver, like I have been posting often back on GIM. silver might be gettin some legs now. If gold can keep $1,160 next week and gain as support, it just may be game on, and of course silver their for the ride, in leaps and bounds. We may see $19.22 in 10 days. Its bound to happen, I would rather see all the metals get smacked down 20% for the next year. (bought 20 1 oz engelhard prospectors at $19.58) so I guess I did hop off the fence long enough to hit confirm.

[peachesinfla]

You know if you remember Silver traded over $21 two years ago. So I would say $19 and some small change ain't $hit really. Where's the rocket launch already? :-[

[mamboni]

Silver demand from industry will grow slowly

Analysts see surge in demand, prices in 2011

Tom Stundza -- Purchasing, 4/5/2010 5:04:33 PM

Industrial demand for silver has begun the year "with a buoyant recovery from last year's trough," says Neil Meader, research director for precious metals at GFMS Group in London. Philip Klapwijk of GFMS also sees "a decent improvement in industrial demand for the white metal from 2009's very low base." However, they add that the market probably won't see a return for industrial fabrication to 2007 pre-slump levels until 2011.

Final 2009 silver demand statistics won't be released until May but it is forecast by Jon Nadler, senior analyst at Kitco Metals in Chicago, to have totaled 30,000 metric tons worldwide. In an e-mail to Purchasing.com, he writes: "Estimates for 2009 are 8,000 metric tons for jewelry/silverware, 3,600-3,900 for photography, same 3,600-3,900 for electrical/electronic, about 6,700 for other industrial, and about 3,000 for ETFs (electronic fund transfers)."

However, Nadler is less optimistic that the GFMS analysts about use this year, suggesting that "2010 is shaping up to be largely similar to 2009." And Meader acknowledges in a note to clients that "there is, of course, a wide spread of opinions among silver users" as well.

Nadler says some multinational original equipment manufacturers are quite pessimistic, not expecting a full recovery until 2013 or even 2014. Others are far more optimistic, he adds, noting "something of a geographical disparity ... as U.S. players, perhaps unsurprisingly, seem more upbeat than many in Europe." That's why John Licata, chief commodity strategist at metals researcher Blue Phoenix in New York, views silver as "an overlooked commodity: despite the fact that uses will continue to increase." He forecasts that silver prices, which averaged $17 in the3 first quarter "will surge above $20 by year's end or in 2011."

Growing use of silver in such photovoltaic applications as solar power cells could raise demand from the electrical/electronic sector in 2011 and beyond, says Meader, but adds he must "inject a note of restraint" about other potential novel uses, many of which haven't really panned out.

Also, Laura Wood, Senior Manager of Research and Markets in Dublin says "the silver price depends on two factors: demand and supply and speculative investment in the metal." She adds the trend in the U.S. dollar often determines the level of investment demand-as a stronger dollar weakens the value of the metal, and vice versa.

http://www.purchasing.com/article/455582-Silver_demand_from_industry_will_grow_slowly.php

[1970 silver art]

My gut feeling says that the DOG will be at $23 (or more) on December 31, 2010.



Yep.........

As of close of business on Friday, December 31, 2010.........Silver finished at $30.91.

;D

[madfranks]

Wow - $19 and change would be such a bargain right now. I remember buying at those prices thinking it was really high.

[Trinity]

Silver spot prices on Nymex are expected to reach $19.22 an ounce by the end of 2010, according to analysts polled by Bloomberg.

You would be one lucky skunk if you were able to buy Silver for a price like that by the end of the year.Twenty five dollars is more reasonable.


I was off by 5 bucks.