Silver

Speculators in gold, silver and copper futures and options sharply cut their net long positions in the week ended May 10. Metal prices sold off during a commodities rout during the period, according to the latest report by the U.S. Commodity Futures Trading Commission.

The gold-silver ratio (GSR) measures how many ounces of silver one can purchase for an ounce of gold, on a certain date. Reference to the ratio has a long history. One of the first mentions was that upon the death of Alexander the Great, the ratio was 12.5 to 1. During the Roman Empire, the ratio was set at 12. By the late 19th century, the ratio had risen to 15. Interestingly, these historical ratios roughly reflect geologists’ estimates that silver is 17 times more abundant than gold in the earth’s crust. This gives many investors a reason to believe that 17 is the natural balance between these elements, and that eventually the GSR will return to it.

The Directors of Aurelia Resources Limited (ASX:AJU) are pleased to confirm the opening of the company’s Offer Period for an Initial Public Offering (IPO) to raise $3 million, and to undertake a listing on the Australian Securities Exchange (ASX). Listing on the ASX is expected before the end of June 2011. Fifteen million shares are being offered at 20 cents per share and the company may accept subscriptions for a further 5 million shares to raise an additional $1 million. Also, a loyalty option, priced at 1 cent will be offered to shareholders after three months on a 1 for 2 basis. The exercise price is 20 cents with an expiry date of 30 April 2014. Image by Aurelia Resources Limited

Northern Freegold Resources announced that it intends to complete a non-brokered private placement of up to 22,857,142 units at a price of $0.35 per unit, for gross proceeds of up to $8 million. Each unit will consist of a common share and a share purchase warrant, each warrant being exercisable to acquire an additional share at $0.45 for 18 months following the closing. Net proceeds from the private placement will be applied towards advancement of the Company's Yukon mineral properties and for general working capital purposes.

The wholesale-market gold price continued to fall on Thursday morning in London - hitting a 1-week low of $1480 per ounce - as world stock and commodity markets took another tumble. Silver fell to $32.50 per ounce at the London Fix, nearly $7 down from Wednesday and 33% below the 31-year high of $48.70 set on April 28.

Silvercorp Metals reported in Q4 that net earnings were up 29% to $12.6 million, or $0.07 per share, compared to net earnings of $9.8 million, or $0.06 per share, in the same quarter last year. It also said that quarterly cash flows from operations up 44% to $34.3 million, or $0.20 per share, from $23.8 million in the same quarter last year. Production was 1.05 million ounces of silver in the quarter, resulting in a record annual production of 5.3 million ounces of silver and achieved the fifth consecutive year of production growth.

Shares of Silver Wheaton (SLW.TO: Quote) rose on Monday, after the miner's quarterly profit more than doubled, helped by record production and soaring silver prices. Net profit rose to $122.2 million, or 34 cents a share, from $50.6 million, or 13 cents a share, a year ago.

The price of gold reversed half of a 1% rally to $1510 per ounce in London on Monday, easing back as the US Dollar rose on the forex market and European stock markets fell hard, but then moved back up in later trading. US crude oil contracts stalled after a 2.7% rally took them back to $100 per barrel.

Thompson Creek Metals Company Inc. announced financial results for the three months ended March 31, 2011, prepared in accordance with United States generally accepted accounting principles ("US GAAP"). All dollar amounts are in U.S. dollars unless otherwise indicated. Financial Highlights: Revenue for the quarter ended March 31, 2011 was $206.7 million, up 62% from $127.8 million for the first quarter of 2010. Image by Thompson Creek Metals