Thursday, October 8, 2009
Silver Wheaton is Silver Streaming
In September, silver outperformed gold. Silver gained 11%, compared to a 6% gain for gold, according to Barclays Capital. Is this going to continue. History would suggest that we are in line for a massive increase in inflation in the upcoming years. Although now deflation continues to be a concern, it is very likely that going forward the opposite will happen. An interesting way to play a possible gold runup, is a silver catch up. Looking at historical prices, silver is cheap when compared to gold. Also, silver tends to move upward with gold in this scenerio. This could mean that SLW could have a huge runup. They have been signing contracts with silver miners to purchase portions of mines before they begin to mine the metal. The largest silver streaming company in the world, it purchases product ahead of time in hopes the metal's price will increase and they will not only realize growth from production but also pricing. Their website is here http://silverwheaton.com/main/. Revenue estimates have an increase of 206% for next quarter year over year. Growth for next year 73%. Triple top breakout on Oct 6th looks bullish.
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