Silver Miners Take Cautious Approach to Pricing Environment

Silver prices have been volatile of late as signs of a strengthening US economy has ptype of rock crushed at a quarryushed the dollar up, and taken away the metal's safe haven appeal. Meanwhile, a slowing Asian economy has led to concerns regarding industrial silver demand. The Bedford Report examines the outlook for companies in the Silver Industry and provides equity research on Silver Wheaton Corporation and Hecla Mining

Several marquee silver producers forecasted a drop in silver prices and took necessary precautions such as selling several mining sites. Many companies also increased hedging. Hedging programs allow producers to lock in current silver prices for future production, guarding against any potential price declines in the future. Banks which execute these forward sales borrow silver from the spot market, which reduces the physical supply of silver temporarily. Analysts warn that an increase in hedging could be taken as a bearish signal for silver prices as it directly...