SOURCE: The Bedford Report

The Bedford Report

May 06, 2011 08:16 ET

Silver Producers Remain Safe Even as Commodities Market Stumbles

The Bedford Report Provides Analyst Research on First Majestic Silver & Pan American Silver

NEW YORK, NY--(Marketwire - May 6, 2011) - After touching 30 year highs recently, the price of silver has plummeted this week after Comex operator, CME Group boosted margin requirements for new speculative positions by 84 percent. Following silver prices lower, producers have taken a hit as investors worry that miners will be unable to post expected revenues. The Bedford Report examines the outlook for the Silver Market and provides research reports on First Majestic Silver Corporation (NYSE: AG) and Pan American Silver Corporation (NASDAQ: PAAS). Access to the full company reports can be found at:

www.bedfordreport.com/2011-05-AG

www.bedfordreport.com/2011-05-PAAS

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 increases selling pressure in the market.

The Bedford Report releases regular updates on The Silver Market so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

The World Silver Survey 2011 report produced for Washington's Silver Institute noted that last year saw a dramatic return to net producer hedging, with 61.1 Moz added to the global hedge book -- a volume just short of the 1997 record high.

Unlike many industry heavyweights, Pan American Silver says it will continue to maintain a no precious metals hedging policy. The company adopted this policy because it believes that limiting the upside of silver revenues "goes against the very principle of its existence."

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer.

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