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Markets Are on 2016 Seesaw: Will Gold Be a Safe Haven Again? (Continued from Prior Part) US stocks hammered
The US stock market has been hammered so far in 2016 as China continues to affect the worldwide markets. Uncertainty and volatility have been on the rise since the beginning of the year. For example, on Friday, January 15, 2016, the Dow Jones gave up 391 points for an aggregate loss of almost 1,400 points since January 1. Fear has likely gripped the markets, sending equity markets south. The carnage in the oil sector is also hammering equity markets as well as investors.
So investors are again looking for safer investments. The prices for gold and silver rose 1.6% and 1.1%, respectively, on Friday, January 15. The iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) fell 1.2% and 0.38%, respectively, on Friday. The key to the rise in these calls for safe havens is the risk-aversion sentiment prevailing globally. In the graph below, you can see the performance of the SPDR S&P 500 ETF (SPY), which prices US stock markets against IAU.
A sunny side for miners
The haven demands and the short coverings have sparked gold and silver, the crucial two precious metals. They also gave a temporary boost to companies in the precious metal mining business. But on Friday, January 15, miners had a mixed reaction to advancing gold and silver prices. Barrick Gold (ABX), Agnico Eagle Mines (AEM), and Silver Wheaton (SLW) rose 4.2%, 0.5%, and 0.54%, respectively.
Dampened market sentiment has left investors with no other alternative than to step back from stocks and invest in gold. The prices of all precious metals are likely on a seesaw, moving up and down from gains to losses as they take their prices from equities.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is 1.4 billions as of today (US$ 992.0 millions, € 902.8 millions). Its stock quote reached its lowest recent point on March 09, 2007 at 10.01, and its highest recent level on May 15, 2017 at 28.53. Silver Wheaton has 47 442 200 shares outstanding. |