PI:Silver extends rally, demand rises on physical demand
Silver continues to shine with prices rising 2.9% this year as physical demand increased amidst turmoil in emerging markets, slowing economic growth and stimulus cuts by the U.S. Federal Reserve.
Futures for March delivery advanced 0.6 percent to settle at $19.928 an ounce at 1:38 p.m. yesterday on the Comex in New York, bringing the rebound since hitting a 34 month low on 28 June 2013 up to 9.7%.
Sales of coins by the U.S. Mint almost quadrupled in January.
An analyst noted that people were still looking for safe-haven assets with traders starting to reposition based on concerns over emerging-market growth.
Gold/silver ratio
The gold/silver ratio – which measures the relative strength of the two metals – had earlier touched a two week low beneath 62.5 as silver prices rose faster than gold.
Trading some 60% below its peak of spring 2011, and after "evolving in a flat range for 2 months" according to technical analysis from Societe Generale, the silver price "could be in the process of forming a double-bottom pattern."
Silver continues rise
For the past three-decades the world has used up more silver than has been mined.
This is due to the fact that no other metal has its combined strength, malleability and ductility, or facilitates electrical and thermal conductivity as well, or can reflect light and endure such extreme temperature changes, according to The Silver Institute.
Uses include silver-coated bearings that are key for the performance and safety of jet engines and silver sulfadiazine for the treatment of severe burns to promote healing and reduce infection.
Silver is also widely used as a chemical catalyst, reflectants, circuitry, superconductors, brazing and soldering.
With the globe's insatiable appetite for new technology, and of course the emerging middle classes, these are some silver companies listed on the ASX.
ASX Silver Plays
Argent Minerals (ASX: ARD) wholly-owns the Kempfield project in New South Wales, with the company looking to bring the project into production.
Kempfield production will be from a stage-by-stage process, with the plan to mine around 8.8 million tonnes over 5 years to produce 9.9 million ounces of silver (at an approximate C1 cost of $16.6 per silver bullion ounce) in Stage 1 of the project.
Cobar Consolidated Resources (ASX:CCU) is developing the Wonawinta silver project south of Cobar in western New South Wales.
Silver production at the Wonawinta Silver mine rose to 205,000 ounces in December 2013, meeting a targeted production rate of 200,000oz per month.
Investigator Resources (ASX: IVR) delivered a maiden 20 million ounce resource for the Paris project in South Australia, which has the potential to be open-pittable.
Successful metallurgical trials have returned silver recoveries of between 65% and 97% using conventional extraction processes.
Terramin Australia (ASX: TZN) had earlier this week announced an intersection of 2 metres at 3,942 grams per tonne silver from 44 metres at the new Frakes target within its Menninnie Dam project in the Gawler Craton, South Australia.
Notably, the mineralisation remains open along strike and down dip, and magnetic interpretation suggests that the deposit may be structurally controlled.
