Sector Snap: Silver miner shares off as commodity declines

Shares of silver mining companies fell Friday as the price of the commodity tumbled in U.S. trading.

The price for silver on the Comex division of the New York Mercantile Exchange fell 87 cents to $17.83 per ounce in afternoon trading.

In afternoon trading, shares of Coeur d'Alene Mines Corp. 14 cents, or 3.7 percent, to $3.63 and Silver Standard Resources Inc. fell $1.31, or 4.3 percent, to $29.22.

Pan American Silver Corp. fell $2.11, or 5.2 percent, to $38.42; Hecla Mining Co. fell 63 cents, or 4.9 percent, to $12.37; and Silver Wheaton Corp. fell 74 cents, or 4.3 percent, to $16.49.

The Dow Jones-AIG Silver Index was off 2.7 percent.

Analysts said the decline stemmed from assorted factors.

"Silver has been sold off with gold market as well today," said Canaccord Adams analyst Steven Butler. "I think there was a bit of a dollar rally, and we're also seeing financials snapping back nicely on the upside, with the easing of the credit risk."

Profit-taking may also be playing a role in the session's decline. Butler pointed out that silver has had a strong run this year. It began the year on the spot market at $14.80 per ounce and hit a year-to-date high of $21.36 before moving into a range during the last few weeks of $17 to $18.75.

Further, silver enjoys a broader base of demand than simply as an inflation hedge, he said, "which over the last few years has allowed silver to outperform gold."