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Silver prices surged past $80 an ounce, rising 180% year-to-date amid global tensions
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Chinese mining firms like CMOC Group and Hunan Silver Co gained between 115% and 251%
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CMOC Group shares rose 251% year-to-date, leading gains among Chinese mining stocks
The white metal has outshone every other metal in the basket with its recent surge, in turn sprinkling glitter on to the mining companies, too. One nation in particular has been a major beneficiary of this sharp rise — China.
China is one of the top producers of silver and some of the Chinese mining giants such as Hunan Silver Co, Zijin Mining Group Co, Jiangxi Copper Co, Shandong Gold Mining and CMOC Group have gained quite a lot over the year.
On Monday, the mining stocks traded mixed after silver retreated from all-time highs but most of them have at least doubled in one year reaching up to 187% on an average.
Among the blockbuster stocks are CMOC Group. A China-based company mainly concerned with mining and processing of basic metals and rare metals, whose shares have had a windfall of 251% on a year-to-date basis.
Hunan Silver Co Ltd., which specialises in silver and its by-products, has zoomed 115% in the last one year. On Monday's trade, the stock settled with gains of over 7%.
Jiangxi Copper Co Ltd. has risen 137.35% year-to-date amid copper crossing the $12,000 per tonne psychological mark.
The company mainly engages in copper mining and dressing; smelting and processing; extraction, and processing of precious and scattered metal.
Another major mining company, Zijin Mining Group Co., which declined more than 2% in Monday's trade, has zoomed nearly 116% on a year-to-date basis.
Shandong Gold Mining fell over 2% during the day but has jumped 70.79% year-to-date and 68.26% in the last 12 months.
In India as well, silver's shimmer did not disappoint with silver miner Hindustan Zinc's shares climbing 38% this year.
The white metal's price soared to new high after crossing the $80 an ounce milestone in Monday's trade but faced headwinds and retreated sharply. Despite the day's volatility, silver prices have risen 180% cushioned by a weaker dollar, rising geopolitical tensions, increased speculative activity, and a structural supply–demand imbalance.