Last week, silver surprised market participants by hitting a three-month high of $21.14 per ounce. Of course, as is always the case when the white metal gains, many wondered if it would be able to keep flying high.
As it turns out, this time the answer was “yes.” In fact, silver outdid itself this week, hitting $21.24 on Wednesday afternoon.
That said, the week didn’t start off promisingly. On Monday, silver opened low and dropped to $20.75 midway through the morning, only rising just over $21 as the day drew to a close. Kitco’s Jim Wyckoff said that day that gold performed similarly, rallying in early afternoon trading “as traders stepped in to buy the [earlier] modest dip in prices.”
Tuesday, a Canadian holiday, was less eventful, with the white metal trading in a fairly short range of $20.97 to $21.13. Wednesday, however, was more exciting. As mentioned, that’s the day silver reached $21.24, its high for the week thus far. The increase seems to have preceded the release of the US ADP June National Employment Report, which brought a weakening in the market, according to another report from Wyckoff.
Today silver has been fairly steady, though losses due to US Department of Labor’s June job numbers brought it slightly below $20 early in the morning. Ultimately, the white metal closed today at $21.13.
As tomorrow is a US holiday it is expected to be a quiet trading day.
Wednesday, Great Panther Silver (TSX:GPR,NYSEMKT:GPL) updated the mineral resources at its Mexico-based San Ignacio silver-gold mine, commenting that the mine’s inferred mineral resource sits at 737,000 tonnes at 115 grams per tonne (g/t) silver and 2.04 g/t gold. Its indicated mineral resource totals 103,000 tonnes at 165 grams g/t silver and 3.54 g/t gold.
Junior company news
Homestake Resource (TSXV:HSR) announced on Wednesday that it has appointed Jeff Tindale as a director, also commenting that Agnico Eagle Mines (TSX:AEM,NYSE:AEM) plans to drill six holes on the Slide target, located at the Homestake Ridge project. The holes will test “areas along strike and down dip of hole HR13-253,” which contains an 18.6-meter interval averaging 101 g/t silver, including a 0.5-meter interval averaging 1,675 g/t silver.
Liberty Silver (TSX:LSL) released two pieces of news this week. The first came on Wednesday, when the company said that the Toronto Stock Exchange has decided to delist its common shares following the close of business on August 5, 2014. The move is due to Liberty’s “failure … to meet the continued listing requirements on the TSX.”
The second announcement from Liberty is a little more positive. The company revealed earlier today that it has come to an agreement with arm’s length creditors “to settle indebtedness in the aggregate amount of $226,000 by issuing 732,000 common shares.” That includes 382,000 shares at a deemed price of $0.50 per share and 350,000 shares at a deemed price of $0.10 per share.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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