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Silver Producers Start Hedging Their Bets

NEW YORK, NY--(Marketwire - 02/18/11) - After a volatile January, silver prices have been on the upswing this month, surging close to 10 percent and touching new 31 year highs as an increase in producer hedging has tightened silver supplies and boosted prices. 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. On the downside, 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 examines the outlook for the Silver Market and provides research reports on Hecla Mining Co. (NYSE:HL - News) and Coeur d'Alene Mines Corporation (NYSE:CDE - News). Access to the full company reports can be found at:www.bedfordreport.com/2011-02-HLwww.bedfordreport.com/2011-02-CDEMost of the concern that silver prices have peaked stems from the idea that greater global economic stability will make the precious metals market less attractive as an investment. Silver, however, is as much a precious metal as it is an industrial metal.According to The Silver Institute, at least half of the demand for silver is industrial with silver being applied to batteries, brazing and soldering, bearings and electronics. New technologies in solar energy, water purification and medical instruments are expected to keep industrial demand for the metal surging going forward.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.Robin Bhar, an analyst at Credit Agricole, argues that "Demand for silver is probably driven more by Asia than anywhere else in the world." China's silver demand has more than doubled in the last decade due in part to the nations surging electronics industry. China was a net exporter of silver for many years but by 2007 the country had become a net importer of the metal.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 publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. 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