This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

After Snapping Losing Streak, Silver Still Range-bound

After Snapping Losing Streak, Silver Still Range-bound

Despite pressure from a better-than-expected US jobs report, silver was able to snap a four-week losing streak last Friday, closing at exactly $29 on the New York spot market. Still, as equity markets rally and investors wallow in the gains and flock to risk, silver continues to lack momentum, languishing within a tight range.

This week's price performance was yet another case in point. Silver lost one penny on Monday, falling to $28.99. The next day, the metal was able to hold onto $0.16, allowing for a close of $29.15. Since then, silver has fallen back into a rut, posting small daily losses. None of the metal's closes in either direction have amounted to a quarter.

Futures market participants have drastically slashed their bullish bets on the metal. The 47-percent decline represents the biggest slump since June, reported Bloomberg.

BNP Paribas (EPA:BNP) cut its 2013 price forecast for the metal by $2.75. The firm now expects silver to average $31.35 this year and $28.45 in 2014. The firm's precious metals strategist, Anne-Laure Tremblay, said the divergence between gold and silver is surprising and warned that change could lie ahead.

This divergence can be seen in the physical metal markets. As gold ETF investors unload their holdings, they are reinvesting a portion of those funds into other precious metals ETFs, according to Commerzbank. Silver in particular has benefited from this trend, the firm said, but added that silver is not profiting from the inflows.

Meanwhile, industrial demand for silver is expected to soar to a new record level, according to Michael DiRienzo, executive director of the Silver Institute.

Speaking at the annual PDAC convention last week, he said industry's widening use of the precious metal is expected to average over 483 million ounces from 2012 to 2014, which is 53 percent greater than the 313.4 million ounces that industrial fabrication demand averaged from 1992 to 2001.

The close

Thursday, May silver on the COMEX ended floor trading near the session high, at $28.80, which still represents losses of $0.15. The metal's closing New York spot price was $28.81, down $0.11.

Company news

Fresnillo (LSE:FRES,OTC Pink:FNLPF), the world's largest primary silver producer, reported record gold production and higher gold prices last year, but said its silver production fell 2.1 percent, to 40.9 million ounces. Moreover, in 2012, Fresnillo's profit dropped 19 percent, from over $1 billion to $845 million.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs