While silver's movement has largely been driven by gold this week, the fact that the yellow metal has fared well, today breaching $1,300 per ounce for the first time since November, has not translated into significant gains for its white counterpart.
Silver had a calm start to the week, rising to $20.25 Monday morning "on the back of gold," according to Standard Bank. It ended the day at $20.07, not far off from its Tuesday close of $20.23. Wednesday brought a little more activity — the precious metal jumped to $20.38 "despite news from Washington DC that the House of Representatives [on Tuesday] approved a one-year suspension of the US debt limit," as per iNVEZZ.com's Victor Kerezov. However, less positively, a note released that day by the Hightower Report states that silver's "upside momentum hasn't been overly impressive and it does seem as if silver has been dragged upward on the charts almost exclusively by the action in the gold market." Today, silver again moved up, reaching $20.52, its high for the week thus far, midway through the afternoon; later, it closed at $20.49 per ounce. Unfortunately, investors shouldn't necessarily expect the metal's gains to continue in the near future — in a report put out today, Standard Bank mentions that silver "is lagging gold and is finding strong resistance on approach of $20.50." Company news IMPACT Silver (TSXV:IPT) announced on Wednesday that it has suspended mining operations at its Mexico-based Capire silver mine due to "the current lower silver prices, recent Mexican mining tax changes and low overall silver grade being mined at Capire." Further, while the company's Mexico-based Capire Production Center has been operating since March 2013 as a 200-tonne-per-day pilot plant using silver-lead-zinc feed from Capire, the company now plans to switch to processing "higher value gold and copper mineralization from the Carlos Pacheco/San Juan area."