Globe says silver bug favours Pan American, others

2008-06-17 08:23 ET - In the News

See In the News (C-PAA) Pan American Silver Corp

The Globe and Mail reports in its Tuesday edition that silver is off 17 per cent from its multidecade high of $20.66 an ounce in March (all figures U.S.). The Globe's Shirley Won writes, however, that silver bugs predict it will rebound and blow past that peak by year-end. Silver futures for July delivery jumped 4.1 per cent Monday to settle at $17.23 an ounce on the Comex division of the New York Mercantile Exchange. With the silver price possibly falling further during the typically weak summer months for precious metals, it may be time to consider investing in silver stocks or bullion for an expected fall rally. "I wouldn't be surprised to see it [silver] spike down as low as $13.50 or $14" in the July-August period, said Jeff Christian, at New York metals consultant CPM Group. "That is the time to buy. I am not sure how high it could go, but I wouldn't be surprised to see it at $22 or $23 by the end of December." Silver is used in jewellery, but has varied industrial uses, including in electronics equipment. Silver bull David Morgan of Silver-Investor.com likes producers Pan American Silver, Silver Standard Resources and Silvercorp. Among the juniors, he likes Minco Silver.