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By Melissa Pistilli-Exclusive to Silver Investing News

Silver spot prices tracked gold lower last week after a bullish run that saw both stocks and commodities in general boosted by a return to risk appetite in the market as investors became increasingly optimistic economic recovery is becoming a reality. Precious metals have especially benefitted from a weaker dollar and inflation fears.

Despite the cheery sentiment, doom and gloom returned again last week as distressing economic data and promises from the Fed that it can wrangle in inflation sent investors turning away from commodities and stocks and into the dollar and treasuries.  Silver and gold took a hit from this dollar turn on Friday dropping below $16 and $990 an ounce respectively.

Precious metals analysts are maintaining their bullish outlook for silver and are sure its rise above $17 this month was not a fluke but a sign that industrial as well as investor demand for silver is gaining momentum.

A recent Bloomberg survey shows 67 per cent of polled gold traders, investors and analysts believe the yellow metal’s price will rebound further next week. And a report from Deutsche Bank AG highlights gold’s strong fundamentals over the long-term. Of course, where gold goes silver is sure to follow posting even higher gains than its cousin.

Minco Silver Advancing Fuwan Project

Minco Silver [TSX: MSV] has reported it has completed a feasibility study on its Fuwan silver project in southeast China. The results show the property has the potential to produce 50.4 million ounces of silver over a mine life of 9.2 years with revenues of approximately US$648.2 million.

The Vancouver-based miner says results from the study show a probable reserve of 9.118 million tonnes averaging 189 grams per tonne silver.

“The study substantiates the quality of the Fuwan project. The present reserve base is an excellent starting point for the project and can be expanded significantly by upgrading the inferred resources into reserves and by potentially expanding the operation into the silver mineralization on the Changkeng Permit,” said Minco President and CEO Zen Cai.

The permitting process is “progressing well” and Minco plans to bring the mine into production as soon as possible. The construction phase should take between 20 and 24 months to complete, said Cai.

Silver Juniors Rebounding From Last Fall’s Plunge

Several silver mining juniors have managed to weather this last year’s economic storm. Most have rebounded nicely from their October 2008 lows to match or in some cases exceed their pre-meltdown share price. A few have yet to recover fully, but in light of silver’s recent bull run and its strong long-term fundamentals most of these companies remain a bargain.

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