Select Silver Stocks Outperforming Market

APMEX

6/27/2018 9:18:57 AM

Daily Gold & Silver Market Report – 06/27/2018

While the price of Silver bullion is down considerably for the year, select mining stocks are performing well, with relatively low levels of decline. New Pacific Metals, SilverCrest Metals and Arizona Mining are among stand-out performers, according to a recent report in Seeking Alpha. The spot price of Silver is down overall for 2018 and Silver mining has declined.

In a report generated June 18 and updated June 26, Coeur Mining shares dropped only slightly, down .30 percent for the year, compared to the overall Silver mining market which has fallen by more than 12 percent. New Pacific Metals' stock has returned 4.3 percent so far this year. Exploration at the Las Chispas Silver-Gold project in Mexico has led to strong returns for SilverCrest Metals. The report also noted shares in Arizona Mining are up 75percent  since February.

Silver Prices May Soon Be Ready to Rally

In a report published Tuesday by Money Morning, Resource Specialist Peter Krauth stated he believes Silver prices are near the bottom and could soon be ready to build strength. Most experts agree the price of Silver has suffered this year primarily due to a strong U.S. dollar and several interest rate hikes from the Federal Reserve. According to Krauth, feelings of enthusiasm over the benefits of tariffs have begun to wane, which has contributed to falling Silver prices.

Krauth also noted despite price declines for both Silver and Gold over the last week, Silver maintained a stronger value relative to Gold. This strength indicated an ongoing bullish trend in the Gold-to-Silver ratio, which favors Silver in the long run. Any future pullbacks of the U.S. dollar could give commodities, including Silver, an edge.

Gold Prices at 6-Month Low, Dollar Index Sees Gains

Tuesday, the price of Gold ended at the lowest level in more than six months. All Precious Metals, including Silver, have felt recent pressure as the U.S. dollar and stock market continue to see gains. In a report published by MarketWatch, Chief Market Analyst for Insignia Consultants Chintan Karnani points out many traders are looking for more value in stocks at the moment, stating, “They are sitting on cash and trying to find stocks which are showing signs of a bottom. As a result, gold is being ignored.” The central bank of China released draft guidelines on the asset management of Gold Tuesday, which also may have contributed to the record low pricing.

At 9:51 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,256.90 Down $3.70
• Silver, $16.26 Down $0.09
• Platinum, $859.00 Down $14.70
• Palladium, $953.30 Down $9.40

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