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How Has a Drop in Prices Affected Silver Investments?


Oct. 20 2015, Published 4:02 p.m. ET

Leaving the $16 territory

Silver futures on COMEX, the commodity division of the New York Mercantile Exchange, rose in line with gold futures for five straight days last week. Silver touched a high of approximately $16.20 per ounce on Thursday. Friday saw a marginal decline of 0.31% and silver closed at $16.10 an ounce, still floating in the $16 range.

However, Monday proved a little less favorable as silver sunk ~1.7%, leaving the $16 territory. Below is a three-day pivot chart for silver that shows that for most parts of the day, silver traded in a narrow range of $15.90 to $16.20 per ounce. Though silver futures have gained 4.1% on a 30-day trailing basis, they have a five-day trailing loss of 0.74%.

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Physical sales

American Silver Eagles seem to be on track for an annual record. Sales for the year stand at 37,129,500 coins. The figures are 6.8% higher than the same time last year. In 2014, when the record hit 44,006,000 on the supply side, the coins posted sales of 34,771,000 through October 12, 2014. The US Mint also limited sales last year but not during the summer months. The US Mint doesn’t offer bullion coins directly to the public. It sells through a network of authorized purchasers. Weekly inventories are typically claimed within the first two days. The last trading week, however, was an exception as the supply held out for four days.

Silver ETFs and miners

Silver-backed ETFs like the iShares Silver Trust (SLV) have also followed the gains and losses in silver. Silver rose 4.4% on a 30-day trailing basis and has lost about 0.13% on a five-day trailing basis. Other stocks that are into the silver mining business have also experienced a substantial drop in their prices. These stocks include First Majestic Silver (AG), Pan American Silver (PAAS), Hecla Mining (HL), and Silver Wheaton (SLW). These four stocks make up 8.5% of the VanEck Vectors Gold Miners ETF (GDX).


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