Finding A Floor For Silver And Silver Miners

This report was sent to subscribers on October 6, 2010.  Join our free mailing list to receive this actionable info 48 hours before the public… EXECUTIVE SUMMARY: • Precious metals are in high demand as investors look for safety in the face of currency uncertainty.

Today’s AM fix was USD 1,591.50, EUR 1,221.98 and GBP 1,062.42 per ounce. Yesterday’s AM fix was USD 1,582.50, EUR 1,216.37and GBP 1,065.30 per ounce.Both gold and silver rose by almost 1% yesterday. Gold rose $12.20 and closed at $1,593.30/oz. Silver closed at $29.15/oz.

By Tom Lydon: By John Spence & Tom Lydon Market Vectors Gold Miners (GDX) plunged over 5% on Wednesday to the lowest levels since 2009 as precious metals ETFs tracking gold and silver were also under heavy pressure.

Gold dropped to the lowest since May, nearing a bear market, on signs that investors are seeking higher returns in equities as the global economic recovery cuts demand for haven assets. Palladium fell the most since October.

Chris Mack submits:One way to value something is by its replacement cost. Appraisers and insurers often use the cost to replace an investment as a baseline of value. In analyzing the silver market, one way to value silver is by measuring the real cost of producing an ounce of silver. This value does not include any premium from investment demand or industrial demand, but it provides a pricing floor because companies don't stay in business for long by losing money.

Gary Dorsch (Global Money Trends) submits: For traders in the metals markets, Freeport McMoran Copper & Gold (FCX) ranks among the crown jewels of the global mining industry.

ByChristopher F. Davis: Introduction

By The Financial Lexicon: With the prices of gold (GLD) and silver (SLV) off to the races to start 2012, let's check in on the miners' stocks to see if they are keeping pace.