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Gold Relaxes before the Fed's Rate Hike Verdict (Continued from Prior Part) Gold-silver ratio surges
With routing precious metals prices, gold’s falling, and silver’s losing 12.7% on a year-to-date basis in 2015, the gold-silver ratio is an important indicator of the relative price performances of the both crucial precious metals.
Also called the gold-silver spread, this indicator measures the number of ounces of silver it takes to buy a single ounce of gold. A higher spread means it takes more ounces of silver to buy a single ounce of gold. Currently, silver is becoming comparatively cheaper than gold. The rising ratio indicates strength for gold and weakness for silver. Below is a historical price chart of the gold-silver ratio.
Investors now have their eyes set on the performances of these two metals after the Fed gives its take on the rate lift. The gold-silver spread is currently trading at $77, which is about 3.2% above its 100-day moving average price of $74.62. A possible fall may be expected in the ratio.
Fundamental strength
As gold is famous for its store of value fundamental, silver is primarily viewed as an industrial metal. The fundamentals for gold may not stand as tall as silver due to the supply crunch in silver’s market.
The growing demand for silver in the solar energy industry gives it an added advantage. Gold is widely expected to lose more luster once the Fed raises interest rates above the zero level.
The fall in gold and silver has lead to carnage in the precious metals mining industry. ETFs such as the Market Vectors Junior Gold Miners ETF (GDXJ) and the Direxion Daily Gold Miners Bull 3X ETF (NUGT) have fallen 20.5% and 78.5%, respectively, on a year-to-date basis.
Mining companies that have also taken hits on their share prices include Eldorado Gold (EGO), IAMGOLD (IAG), and Silver Wheaton (SLW). These three companies contribute 9.8% to the price changes in the Market Vectors Gold Miners ETF (GDX).
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PRODUCTEUR |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Silver Wheaton est une société basée au Canada. Silver Wheaton est productrice d'argent, de cuivre, d'or, de plomb, de silica et de zinc au Canada, au Mexique, au Perou, au Portugal, en Grece et en Suede, en développement de projets d'argent, de cuivre, d'or et de zinc au Canada et au Chili, et détient divers projets d'exploration au Portugal et en Argentine. Ses principaux projets en production sont ZINKGRUVAN en Suede, KENO HILL (BELLEKENO) et MINTO MINE au Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN et G-9 CAMPO MORADO au Mexique, YAULIYACU au Perou, STRATONI en Grece et NEVES-CORVO au Portugal, ses principaux projets en développement sont PASCUA LAMA au Chili et KUTCHO CREEK au Canada et ses principaux projets en exploration sont PROMOTORIO DURANGO et MONTOROS au Mexique, ALJUSTREL au Portugal et LOMA DE LA PLATA (NAVIDAD) en Argentine. Silver Wheaton est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 1,4 milliards (992,0 millions US$, 902,8 millions €). La valeur de son action a atteint son plus bas niveau récent le 09 mars 2007 à 10,01 , et son plus haut niveau récent le 15 mai 2017 à 28,53 . Silver Wheaton possède 47 442 200 actions en circulation. |