Silver: Prices Going Up in 2009?

While in my opinion there is no doubt 2009 will be a great year for silver, and prices will go up for silver futures, coin and bullion, as well as many silver mining company stocks.

A major reason there's been so much confusion surround the behavior of gold and silver recently, is because the unusal situation of forced liquidation has kept them down in price while the U.S. dollar has remained strong, even though underlying fundamentals said it shouldn't have.

Because of this, companies were forced to sell their positions in gold and silver and other commodities in order to raise much needed cash, this kept things where they have been for silver and silver futures until recently. It seems companies' positions have largely unwound now, and silver and gold are starting to be the investment of choice for those interested in both safety and getting a return. This will be true for silver, whether it's silver dollars, silver futures, silver bullion, or any type of silver coin, and most well run silver companies. Silver prices in the near future should do very well for silver investors, and whether you take physical possession of silver or buy silver company stocks or silver futures, they should perform strongly in 2009, as prices of silver go up.

This is one of the questions I've been asked about a lot lately, on whether silver prices are going up or will rise in 2009. The answer is almost assuredly yes! And considering the price of silver in contrast to gold is so large, the percentage of silver should outshine gold and probably perform even better in that regard. The one thing to keep in mind is if safety or a haven for your money is more important, gold will be the obvious choice, and it should give a solid return for the 2009 economic circumstances. Silver will do well to, but it could be more volatile than gold, but also has a better chance of making you more money. It's the old risk versus reward this year in silver and gold investing.

We shouldn't be afraid of those worried over the overall commdodity sector, and those making it look like everything connected to raw materials will fall this year. That's going to be absolutely false. I think they're asserting that so you don't pull your money out of their investments and put it into commodities, where is several cases prices should do quite well this year. Obviously we must do our homework in our commodity investing, as a number of raw materials will definitely fall in price, and so will be risky. All we have to do there is understand what sector we're investing in, and what sectors are weak as far as demand for raw materials go.

Back to silver, investing in silver will be profitable this year, and silver prices will rise in general across the board. Silver futures prices will rise along with other commodity futueres, and in some cases phyiscal silver in the form of bars and bullion should rise right along with silver futures. Investing in the stock of silver mining and silver companies, as in all cases, must be handled differently, and things like management and operations is as important as anything else. Silver prices will enable companies to expand, the question is whether it'll be done responsibly or not.

So in answer to the questin of whether prices of silver will go up this year, it is absolutely yes. I think investing in silver futures and physical silver, as far as bars and bullion will be a surety for profit, when you get into silver coins and numismatic value, obviously there are many more factors involved in silver coin prices.

Silver Falcon Mining, (SFMI) Expanding Milling Circuit

Silver Falcon Mining, Inc. (PINKSHEETS: SFMI) announces additional equipment to boost gold and silver production at its Melba, ID. mill.

The engineers of RMS-Ross, the suppliers of the equipment for the mill finished an on site inspection. The Company, under RMS' direction, began relocating certain pieces of equipment in the mill circuit for maximum output; also allowing for the installation of a parallel wet-line circuit. This additional circuit equipment and realignment of the current mill components should quadruple planned gold and silver production at the Company's Melba, ID. mill. The Company believes these changes should be completed within the next 2-3 weeks.

Mr. Pierre Quilliam, President of Silver Falcon Mining, Inc., said, "An increase in the demand for the gold/silver concentrates, motivated SFMI to undertake an expansion of planned output production at the Melba mill. This installation of the wet-line circuit should allow SFMI to quadruple precious metals output and, further advance, by at least two years, the underground mining developments on War Eagle Mountain."

Silver Falcon Mining, Inc., is an exploration and development Company specializing in high-grade Gold and Silver mining properties in North America.

Further Information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL, 800-631-8127 and/or the Company at 941-761-7819, www.silverfalconmining.com.

Silver Falcon Mining, Inc. cautions that the statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.

Silver: Pan American Silver in Public Offering

Pan American Silver Announces Public Offering of Common Shares


Pan American Silver Corp. (TSX: PAA)(NASDAQ: PAAS) (the "Company") announced today that it has filed a preliminary prospectus supplement to its existing base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada and has made a similar filing with the SEC in connection with a public offering of its common shares to raise gross proceeds of US$90 million (the "Offering").

The Company will also grant to the underwriters of the Offering an option, exercisable for a period of 30 days following the filing of a final prospectus supplement, to purchase additional common shares for consideration of up to US$13.5 million.

The Company expects to use the net proceeds of this Offering to fund acquisitions, development programs on acquired mineral properties, working capital requirements and for other general corporate purposes.

Goldman Sachs Canada Inc. and CIBC World Markets Inc. will act as co-lead managers and joint book runners of the Offering.

A copy of the preliminary prospectus supplement and the base shelf prospectus may be obtained from your Goldman Sachs sales person or Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004 Attention: Prospectus Department (212-902-1171 or toll-free 866-471-2526, facsimile 212-902-9316) or by emailing prospectus-ny@ny.email.gs.com.

Copies of these documents may also be obtained from CIBC World Markets Corp., 425 Lexington Avenue, 5th Floor, New York, New York, 10017, by fax at 212-667-6303 or by email at useprospectus@us.cibc.com. You may also obtain a copy of these documents in Canada from CIBC World Markets Inc., by fax 416-594-7242 or request a copy by telephone at 416-594-7270.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy common shares nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Pan American Silver

Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company by increasing its low cost silver production and silver reserves. The Company has eight operating mines in Mexico, Peru, Bolivia and Argentina.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND "FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN SECURITIES LEGISLATION. SUCH FORWARD-LOOKING STATEMENTS AND INFORMATION INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS AS TO THE TERMS AND CONDITIONS OF THE OFFERING, THE PROSPECTS OF ITS COMPLETION AND THE USE OF PROCEEDS FROM SUCH OFFERING. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION TO, UPDATE SUCH FORWARD-LOOKING STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.

FORWARD-LOOKING STATEMENTS OR INFORMATION INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, LEVEL OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS OF PAN AMERICAN AND ITS OPERATIONS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH STATEMENTS. SUCH FACTORS INCLUDE, AMONG OTHERS: FLUCTUATIONS IN THE SPOT AND FORWARD PRICE OF SILVER, GOLD, BASE METALS OR CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN THE CURRENCY MARKETS (SUCH AS THE PERUVIAN SOLE, MEXICAN PESO ARGENTINE PESO AND BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS, REGULATIONS AND POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, PERU, MEXICO, ARGENTINA, BOLIVIA, THE UNITED STATES OR OTHER COUNTRIES IN WHICH THE COMPANY MAY CARRY ON BUSINESS IN THE FUTURE; OPERATING OR TECHNICAL DIFFICULTIES IN CONNECTION WITH MINING OR DEVELOPMENT ACTIVITIES; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); INADEQUATE INSURANCE, OR INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; BUSINESS OPPORTUNITIES THAT MAY BE PRESENTED TO, OR PURSUED BY, THE COMPANY; THE COMPANY'S ABILITY TO SUCCESSFULLY INTEGRATE ACQUISITIONS; AND CHALLENGES TO THE COMPANY'S TITLE TO PROPERTIES; AS WELL AS THOSE FACTORS DESCRIBED IN THE SECTION "RISK RELATED TO PAN AMERICAN'S BUSINESS" CONTAINED IN THE COMPANY'S MOST RECENT FORM 40F/ANNUAL INFORMATION FORM FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORY AUTHORITIES. ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS OR INFORMATION, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE ANTICIPATED, DESCRIBED, ESTIMATED, ASSESSED OR INTENDED. THERE CAN BE NO ASSURANCE THAT ANY FORWARD-LOOKING STATEMENTS OR INFORMATION WILL PROVE TO BE ACCURATE AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS OR INFORMATION. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS OR INFORMATION.

Contacts:
Pan American Silver Corp.
Kettina Cordero
Coordinator, Investor Relations
(604) 684-1175
Email: info@panamericansilver.com

Pan American Silver Corp. looks to raise as high as $103 million in the public offering.