Today In Silver

Note: This commentary was originally published at Metal Augmentor on Friday, June 5, 2009 at 5:38PM EST. Sorry, I forgot to post it here earlier but it does continue a topic from a few months ago that bears following.

As the Inka Cola News blog has been reporting, the Doe Run Peru facility that is responsible for smelting a significant portion of Peru’s lead, zinc and silver has been shut down again. For those who don’t know, Peru is a major producer of silver, lead and zinc. Thus, the Spring 2009 Silver Supply Shock situation is back in play. For now, silver doesn’t care much about mine supply as it is currently the toy of speculators. It is possible, however, that any correction in the price of silver could be tempered by this developing situation.

Moreover, the political situation in Peru has turned violent and tragic over the past 24 hours. Once again, Inka Cola News is the primary English-speaking website that is keeping close tabs on this. The violence has a significant potential to harden anti-development and anti-mining battle lines so it must be watched closely. XXXXXXXXX*, a company we mentioned recently, has its flagship project in Peru. We don’t believe the developments warrant a sell for now and in fact the shares were actually up 35% today to 70 cents Canadian, but it certainly bears watching closely for now.

*You get the name of the stock as a Metal Augmentor subscriber.

silverax Silver Supply and Demand