Pan American Silver Comments on the Impact of the Silver ETF on the Silver Market (PAAS 3Q05 Conf Call Quotes, ETF: SLV)

Nov. 4.05 | About: Pan American (PAAS)

Pan American Silver (ticker: PAAS) Chairman Ross Beaty briefly discussed the outlook for the price of silver on his company's Q3 earnings call, and mentioned the forthcoming silver ETF (ticker: SLV). Key extracts:

Looking at silver markets, we are pleased to see the relative strength in silver this year. It is easy to paint a bullish picture going forward. Continued probable weakness in the U.S. dollar should be good for both silver and gold.

Strong industrial demand continues. Particularly in China right now, with numerous new applications for silver in the electronics and biomedical industries. Silver supply is growing slowly from mines, but it is dropping in terms of scrap supply, due to less silver being used in photography.

...More people are buying physical silver as an investment as an alternative to stocks and bonds and it is more in sync with a general trend with more physical commodity acquiring in all metals by interested investors… this should accentuate, if… there is economic weakness in major global markets going forward.

We see particularly good promise in the silver sector for strong investment demand if this silver ETF is approved by the SEC over the next four or five months, because that will provide a very low-cost, very easily available to any investor, opportunity to buy physical silver, whereas it is rather more difficult to do that right now.

(Quotes are from the CCBN StreetEvents transcript.)


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