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Making the biggest splash in the silver market this week was the US Mint, which revealed that from January to August 2013, it sold more American Eagle silver coins than it did during the whole of 2012.
Silver has declined slightly since rising to nearly $25 last week, but the white metal is by no means suffering.
Following the Labor Day holiday on Monday, silver climbed to $24.44 on Tuesday morning, not far from last week’s high point of $24.93. However, soon after hitting that price, the white metal began to fall, ultimately closing the day at $24.28.
Wednesday, silver continued to drop, moving as low as $23.44, almost a full dollar lower than its closing price the previous day. The next day, that fall continued, with silver sinking to $23.13 in early trading. Though it managed to rise to $23.58 later in the day, that gain did not last long — the white metal ultimately closed the day at $23.18.
Capital Trading Group suggests in a daily report that the “uncertainty being thrown off by the Syrian situation” indirectly buoyed silver prices earlier in the week, while news of higher silver production in Peru during July, coupled with falling gold prices, engineered its fall later in the week. The firm states in another report that “evidence of a recovery in the global economy” may lift the white metal moving forward.
Silver Eagle sales soar
The US Mint reported that as of August 31, it had sold 33,075,000 ounces worth of American Eagle silver coins in 2013, more than the 33,074,000 ounces sold in the entirety of 2012, according to Mineweb. The Mint’s American Eagle sales have been strong since January, when it ran out of the coins and was forced to temporarily suspend sales.
Sales of American Eagle gold bullion coins, meanwhile, dropped to a six-year low in August, as per Mineweb.
Company news
Beginning the week on a sad note, Endeavour Silver (TSX:EDR,NYSE:EXK) announced that on September 1, a mine worker died as a result of an accident at its Mexico-based Guanaceví mine.
Bradford Cooke, CEO of Endeavour, commented, “[w]e are greatly saddened by this tragic accident and extend our sincere condolences to the victim’s family, friends and colleagues. Safety is a top priority for Endeavour and once the investigation is complete, Endeavour will review and implement any additional safety measures recommended to prevent such an accident from recurring.”
SilverCrest Mines (TSXV:SVL,NYSEMKT:SVLC) came forward with more positive news today, releasing further results of delineation drilling at its Santa Elena mine, located in Sonora, Mexico. The results show “further expansion” of the Santa Elena deposit, with several holes identifying more high-grade intercepts and expanding the El Cholugo and El Cholugo Dos zones. Tortuga, a new zone, was also discovered.
Junior company news
On Tuesday, Mines Management (TSX:MGT,NYSEMKT:MGN) provided its financial and operating results for the second quarter of 2013, commenting that it incurred a net loss of $1.8 million, less than the $2.4 million it lost in the year-ago quarter. Additionally, the company notes in its press release that it made “[s]ignificant progress” on the final environmental impact statement for its Montanore silver-copper project, also beginning an initial round of metallurgical analysis on mineralization from its Estrella gold-silver project.
The next day, Kootenay Silver (TSXV:KTN) reported that the next phase of drilling at its Sonora, Mexico-based Promontorio silver project is set to start up on September 12, 2013. “Core drilling will focus on a series of high-grade silver intercepts recently identified within a new breccia zone of silver mineralization situated between the Pit and NE Zones,” Kootenay’s press release states.
Aura Silver Resources (TSXV:AUU) announced earlier today that it has amended the NI 43-101 report for its Taviche project, which is located in Mexico. The previously disclosed inferred mineral resource estimates for silver and gold are unchanged.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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