Silver Prices Enjoy Rebound

After languishing for much of the second half of 1996, silver prices rebounded late last week and continued to rally Monday.

The price of silver rose above $5 an ounce for the first time in many months, rising 7 cents on the New York Comex spot market to $5.02. Local mining companies have benefitted from the price rise, which directly helps their earnings.

Rising signs of pending inflation and fears that the stock market may not be able to maintain its breakneck bull market may have attracted some investors to precious metals, some investors said of the rally.

However, these rallies usually result in more selling. Mining companies hope that the price settles at a level above where it started, and then starts another climb.

Coeur d’Alene-based Hecla Mining Co.’s stock was unchanged at $6.13, but had risen a dollar from a low earlier in the month. Coeur d’Alene Mines Corp. rose 13 cents to $16.13 Monday.

, DataTimes