Silver's Re-Run: The Devil's Metal Lives On (SLV, GLD, AGQ, SLW, PAAS, HL)

Is it starting to feel like the silly season all over again?  On a day after higher consumer confidence and weak durable goods, spot gold is up just over 1% at $1,788.90 but spot silver is up almost 4% at $36.99 per ounce.  Silver is now at a high back to when the rug was yanked out from under its feet in September. A Euro cash infusion and a 10% silver mine activity in December may be adding fuel to today’s fire.

iShares Silver Trust (NYSE: SLV) is up 5% at $36.06 and we have seen 20.6 million shares trade at 12:45 PM EST versus an average volume of 18 million shares.  The ProShares Ultra Silver (NYSE: AGQ) is up 10% at $73.20 and it has already crossed its average daily volume as well with its double-leverage.  The SPDR Gold Trust now has more than $71 billion in assets and it is up ‘only’ 1.2% at $173.80.

The individual stocks are lagging today.  Silver Wheaton Corporation (NYSE: SLW) is up 3.45% at $39.83.  Pan American Silver Corporation (NASDAQ: PAAS) is up 2.7% at $26.08.  Even the most battered of the lot in Hecla Mining Company (NYSE: HL) is up only 1.9% at $5.33.

Silver has more industrial use than gold, besides silver is called the devil’s metal for a reason.  We’ve seen this movie before.

JON C. OGG