Silver Strengthens on Greece's Austerity Measures: $52 by 2013

As the weekend draws near, silver investors are happy with the way silver reacted to the Greek government's approved austerity action.

Silver prices are staying steady with moderate moves upward while most other markets are responding in a flustered-like, chaotic manner.

According to a metals analysts with INTL FCStone, Edward Meir, “Most markets are still overextended and may be entering a ‘buy the rumor, sell the news’ type of mode now that the Greek issue is entering its final stages.”

On the other hand, Australian media sources are saying that money managers holding silver, gold, and copper futures and options raised their “net long options” last week.

Yesterday, silver prices closed at $33.42 an ounce and prices for March deliveries climbed up another 16 cents to $33.54 per ounce.

As the year trudges on, experts anticipate silver to continue its steady climb...By 2013, it is likely to average around $52.00.

For the remainder of 2012, BNP Paribas has estimated silver prices for the four quarters of this year: $31.90, $34.95, $39.30, and $43.80, respectively.

Although silver futures prices closed near Wednesday's session low, appearing a bit bearish, silver bulls “still have the overall near-term technical advantage,” says Jim Wyckoff of Kitco News.

Wyckoff also adds:

“Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the February high of $34.52 an ounce.” 

In the meantime, here are a few silver-hot companies to keep your eyes on:

-Hecla Mining Company (NYSE:HL) – Hecla recently announced the largest reserve and resource increases in the company's history. Hecla increased its silver resources by 13 percent, bringing them up to 281 million ounces. The company also increased its silver reserves by four percent; now at 148 million ounces.

-Cayden Resources (TSXV:CYD) – Cayden has completed a successful drilling project at the Quartz Mountain close to Fallon, Nevada where workers were targeting a historic spot known for its silver, lead, and zinc resources.

President and CEO, Ivan Bebek reported that it “is going to be a very eventful year for Cayden, as the company will be aggressively exploring both our Morelos Sur and Quartz Mountain properties throughout the year. We expect to be delivering significant results from the exploration programs in the coming months.”

-Silver Bull Resources (TSX:SVB, AMEX:SVBL) – Recently completed drilling projects reveal good news for Silver Bull (and all of you silver bulls!). According to latest announcements, at least 80 percent of the drill holes intersected with zones of silver oxide mineralization “of over 30 g/t Ag, including 144 g/t Ag over 31 meters, 109.3 g/t Ag over 12.55 meters, and 89.4 g/t Ag over 36.25 meters.”

Tim Barry, Silver Bull's President and CEO, is excited about the results and “looks forward” to publishing a resource update in the second quarter of this year.

-Abcourt Mines (TSXV:ABI) – Abcourt saw surging shares after claiming to intersect an extremely high silver zone in the Western portion of the Abcourt-Barvue ore body in Quebec. The press release showed that the average grade ranged from “240.0 meters to 244.70 meters at 1,386.16 grams of silver per tonne (g/t Ag).” Results are greatly contributing to their reserves and resources, positioning Abcourt for a promising year ahead.

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