Hedge funds bullish on silver as futures open interest nears record

Coeur d’Alene

That will boost profit for Coeur d’Alene Mines Corp., which gets about 65 percent of its revenue from silver. Net income will jump 39 percent to a record $129.7 million this year, according to the mean of five analyst estimates compiled by Bloomberg. Shares of the Coeur d’Alene, Idaho-based company rose 15 percent this year and will climb 9.9 percent to $30.59 in 12 months, according to the average of seven forecasts.

Pan American Silver Corp., based in Vancouver, will report profit of $264.6 million next year, from $212.2 million, the mean of five estimates shows. Shares of the company fell 3.5 percent in New York trading since the start of January and will rise 11 percent to $23.31 in the next 12 months, according to the average of 14 forecasts.

“In this accommodative monetary policy scenario, silver seems to be trading as an alternative currency,” said Michael Cuggino, who manages about $17 billion at San Francisco-based Pacific Heights Asset Management. “If the global economy picks up, silver will show some strength from industrial demand.”

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