Silver hoard near record as hedge-fund bulls recoil

Small traders following analyst advice

Analyst Forecasts

Coeur d’Alene will report net income of $125.9 million this year, from $93.5 million in 2011, the analyst estimates show. Shares of the Coeur d’Alene, Idaho-based company slid 17 percent to $19.95 this year. They will rally 34 percent to $26.74 in 12 months, according to the average of seven analyst forecasts.

Pan American Silver Corp., based in Vancouver, will make $302.5 million next year, from $234.8 million in 2012, the mean of six analyst estimates shows. Shares of the company, which got 51 percent of its revenue from silver in 2011, fell 28 percent to $15.79 in New York trading since the start of January. They will rise 43 percent to $22.63 in the next 12 months, the average of 14 forecasts compiled by Bloomberg shows.

Fed policy makers pledged to do more if needed on Aug. 1 and ECB President Mario Draghi said July 26 he would do whatever it takes to preserve the 17-nation euro. Lower interest rates increase the allure of precious metals because they generally earn investors returns only through price gains.

“People like me who have tremendous confidence in silver and are invested in the market see it rising once the easing begins,” said Jeffrey Sica, the Morristown, New Jersey-based president of SICA Wealth Management, who helps oversee about $1 billion of assets. “I expect an acceleration in the fear trade. Most of the hedge funds who sold will be back once the market gathers momentum.”

Bloomberg News

--With assistance from Debarati Roy in New York. Editors: Stuart Wallace, Claudia Carpenter

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