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Wanderer

Silver Wheaton

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Apologies for starting a new thread. I couldn't find an existing Silver Wheaton thread despite a search (just bits on other threads).

 

This one seems stuck in a rut after a big fall down following silver. Do readers think the fall is simply related to the price of silver? (in which case probably worth hanging in as far as I am concered).

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Apologies for starting a new thread. I couldn't find an existing Silver Wheaton thread despite a search (just bits on other threads).

 

This one seems stuck in a rut after a big fall down following silver. Do readers think the fall is simply related to the price of silver? (in which case probably worth hanging in as far as I am concered).

 

Yes, Silver Wheaton is highly leveraged to the price of silver. Like RGLD its a royalty company, which negates the rising cash cost problem that has been plaguing mines. If silver has a good run, SLW will fly IMO..

 

 

 

 

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I like Silverstone (SST). They have the same business model as SLW but a much cheaper valuation.

 

 

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SST.v is a better pick IMO as well

 

I think we may have missed the boat on silver at $10 earlier Sept... I think there'll be a technical pullback on news of bailout (gold / copper will dro) along with producers that are seeing escalating costs

 

Jump back in around $11 next week

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Hi.

 

Anyone else hold this company. I bought in gradually with an average price of about $10, saw it go as high as $19 and now it's less than $3 - gulp :huh:

 

I've not been looking at my PM portfolio over the last few weeks as I've built up my physical and share position just for the kind of situation we're in now, abviously expecting the outcome to be somewhat different in terms of where my shares would be :lol: I'm still happy enough to hold.

 

Is SLW is dire trouble with their current debts? Will the current POS in effect cause them to default as the profit their making per oz is too small. *IF* the price of silver does go up then this share could up considerably, but in the current market it takes a brave soul to take any risks...

 

Opinions welcomed,

crude.

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Have you guys got the New York or Totonto listed SLW?

 

I was thinking of buying the NYSE SLW today within my ISA. Any Info would be appreciated.

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I was thinking of buying the NYSE SLW today within my ISA. Any Info would be appreciated.

 

I’ve got SLW on my watch list, but no money to buy with at the moment.

 

http://uk.finance.yahoo.com/q?s=slw&m=L&d=

http://uk.finance.yahoo.com/q?s=slw.to&m=L&d=

 

The price is similar between the two: USA (£1.97) and CAD (£2.06).

 

I was hoping that someone could say which one is better.

 

CAD is probably the safer currency right now. Although, I think there may be a tax break for foreign investors on NYSE, but I’ve not looked at the details yet.

 

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Silver Selling for $1 per Ounce

 

http://www.fool.com/investing/value/2008/1...-per-ounce.aspx

 

 

QUOTE

With 251.5 million shares outstanding, long-term value investors can think of each Silver Wheaton share as roughly equivalent to 2.44 ounces of silver in the ground. It turns out investors really are paying just over $1 per ounce of silver in the ground.

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I’ve got SLW on my watch list, but no money to buy with at the moment.

 

http://uk.finance.yahoo.com/q?s=slw&m=L&d=

http://uk.finance.yahoo.com/q?s=slw.to&m=L&d=

 

The price is similar between the two: USA (£1.97) and CAD (£2.06).

 

I was hoping that someone could say which one is better.

 

CAD is probably the safer currency right now. Although, I think there may be a tax break for foreign investors on NYSE, but I’ve not looked at the details yet.

 

I was told by my dealer that it doesn't make any difference which currency. As the price is based on their performance and it changes in the different currencies as the exchange rate changes. Seems to make sense to me, because really your money is in silver rather than USD or CAD.

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??? Your money is not in silver. The price of silver halved, say from $20 to $10, but the price of SWL has gone to a sixth from nearly $20 to $3. (approx numbers)

 

Having said that, (picking up the numbers from Yahoo as best as I can) 1 year ago

 

1 year ago, SWL (USA) cost £7.31 Today it is £1.97 = -73%

1 year ago, SWL (CAD) cost £7.69 Today it is £2.06 = -73%

 

Is there a tax advantage to USA over CAD for UK residents? Stamp duty or dividend tax or CGT?

 

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??? Your money is not in silver. The price of silver halved, say from $20 to $10, but the price of SWL has gone to a sixth from nearly $20 to $3. (approx numbers)

 

Having said that, (picking up the numbers from Yahoo as best as I can) 1 year ago

 

1 year ago, SWL (USA) cost £7.31 Today it is £1.97 = -73%

1 year ago, SWL (CAD) cost £7.69 Today it is £2.06 = -73%

 

Is there a tax advantage to USA over CAD for UK residents? Stamp duty or dividend tax or CGT?

 

I meant as far as the currency was concerned. SLW is a leveraged play on silver, so if the price goes down the share price will drop more, equally if it goes up the opposite will happen. I don't think if the dollar starts to devalue it will affect the share value of SLW.

 

My dealer bought the CAD SLW within my ISA, there was no stamp duty charge. I don't know about dividend tax yet and as I have it in an ISA, no CGT.

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I meant as far as the currency was concerned. SLW is a leveraged play on silver, so if the price goes down the share price will drop more, equally if it goes up the opposite will happen. I don't think if the dollar starts to devalue it will affect the share value of SLW.

 

My dealer bought the CAD SLW within my ISA, there was no stamp duty charge. I don't know about dividend tax yet and as I have it in an ISA, no CGT.

 

 

FFS, H-L don’t appear to have any of the Silver Wheatons. Maybe I won’t be buying this tax year after all :angry:

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FFS, H-L don’t appear to have any of the Silver Wheatons. Maybe I won’t be buying this tax year after all :angry:

 

If its not a UK listed stock (or they're not trading that particular UK one online - happens) then you have to phone them to sort. I use H&L.

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I’ve got SLW on my watch list, but no money to buy with at the moment.

 

http://uk.finance.yahoo.com/q?s=slw&m=L&d=

http://uk.finance.yahoo.com/q?s=slw.to&m=L&d=

 

The price is similar between the two: USA (£1.97) and CAD (£2.06).

 

I was hoping that someone could say which one is better.

CAD is probably the safer currency right now. Although, I think there may be a tax break for foreign investors on NYSE, but I’ve not looked at the details yet.

 

Given the fiasco unfolding in the states, wouldn't it be best to use the Canadian exchange? Who knows what political events may transpire in the US.

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...

My dealer bought the CAD SLW within my ISA, there was no stamp duty charge. I don't know about dividend tax yet and as I have it in an ISA, no CGT.

 

Wow, you've made 40% already :)

 

Given the fiasco unfolding in the states, wouldn't it be best to use the Canadian exchange? Who knows what political events may transpire in the US.

 

I think CAD is the safer option too.

 

If its not a UK listed stock (or they're not trading that particular UK one online - happens) then you have to phone them to sort. I use H&L.

 

 

Thanks, I'll call them when I am ready to buy

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Wow, you've made 40% already :)

 

Currently up 28% in less than a week. Happy days :D

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SILVER WHEATON was one of the companies covered in Financial Sense's marathon precious metals session of 27Nov

 

http://www.netcastdaily.com/broadcast/fsn2008-1129-3b.mp3

 

Sounds pretty goon in the broadcast, but somehow Jim always makes it that way. Is still worth a listen however.

 

Thanks for the Silverstone suggestion guys

 

 

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Ouch,

 

I'd bought in more of SLW over recent weeks and yesterday had made a very tidy paper profit. I thought about taking it but hestitated and of course today there is a big smackdown.

 

MOre of an investor physcology question - when do readers here take profits? What are your criterion for deciding on profit taking versus letting profits run (or get whittled away in this case!)

 

Wanderer

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Ouch,

 

I'd bought in more of SLW over recent weeks and yesterday had made a very tidy paper profit. I thought about taking it but hestitated and of course today there is a big smackdown.

 

MOre of an investor physcology question - when do readers here take profits? What are your criterion for deciding on profit taking versus letting profits run (or get whittled away in this case!)

 

Wanderer

 

 

Hehe, just replied to you in the RGLD thread about SLW. For what it's worth though, I think frequent trading in this market is a recipe for disaster, it's time to hoard and hold. One wrong step in trading could see you lose 10% in a single day at the moment - and that's without leverage. A bit too much risk for my appetite, given the current circumstances.

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Ouch,

 

I'd bought in more of SLW over recent weeks and yesterday had made a very tidy paper profit. I thought about taking it but hestitated and of course today there is a big smackdown.

 

MOre of an investor physcology question - when do readers here take profits? What are your criterion for deciding on profit taking versus letting profits run (or get whittled away in this case!)

 

Wanderer

 

 

One thing I have learnt is to not go all at once with your position... Since the last 2 months I have been trading silver quite actively with a more speculative account and had much better results than my Buy and Hold account - which has been devastated this year and scaling in and out of a position definitely helped...

 

So I usually take a long-term view (ie daily chart). 2 months ago I had decided that silver was in a bullish divergence and was going to build a base with a view to bouncing back later (ie NOW!).. So I set my strategy to trade that range and that worked pretty well using a combination of TA analysis, "daily seasonal" trading (ie big movements and counter-movements tend to come at 13:00, 13:30, 15:00, etc.). Although I have to say that by monitoring it about 12 hours a day you get some sort of feel for the market and that helps too (ie a spike down before one of these important times might mean the trend wwill be in the other direction (ie stop hunting).

Anyway my main strategy was to gauge the spikes up or down and to scale in and out and not all at once (ie if it goes up by 5% by a certain time of the day, there is a big chance that it will pull back later in the evening. So start selling, if it goes up more sell more, etc... same on the way down... And that is the important bit... I think because

 

1) psychology: if you only sell a small portion of your position at any given time it will drastically reduce the emotional impact of the price moving against you and the mistakes that you might make as a result (and remember that this gives you more opportunity to sell or buy progressively) - for example I have my core position fully invested right now but since I turned long-term bullish after we broke out of 10.50 I decided to change my strategy and add 20% to it more on pullback. When the price was at 11.40 I did not really care if it went up (ie my position value goes up) or if it went down (giving me more opportunity to add to my core position) - which I did today at 11.10 but only for 10% more - leaving me room to add some more if it keeps going down - as it seems to be doing right now!

 

2)benefits of averaging in - its super hard (I find) to time the exact high or top - if you average in you are much more likely to get in/out at around that level.

 

You can also have X% of your full committed position - that helped me a few weeks ago, while I identified that we were in oversold territory but did not want to sell everything at that price and completely miss out if the price got spiked up (that was to do with talks of backwardation, defaults, etc.) I reduced my pos by 50% to book in some profits and reduce my risk to a downside while keeping ssome exposure to an upside movement. The price ended up going lower - at which point I loaded back up the full position. You might have wanted to do some of this with your SLW. the downside to this is when you get the mother of all upmoves, you are likely to miss it because you scaled out too early - however the profits from all the previous trading might outweigh the lost opportunity

 

As I said that has been pretty succesful: I initially got in at 9.25 on 24th October and by trading my account size around 75 times over, over the last 2 months I have managed to get a return of just under 300% while silver "only" returned 18%. So trading short term is definitely possible and can be very profitable - but speculative.

 

The thing that worries me is how I would react in adversity (ie price really going against me) as that has not happened too much these last 2 months (well the price has been terrible to me from March to November and I was only in Buy and Hold mode by then so its time it works out better!), I hope that I would have the strength to cut my losses and start again from a lower level.

 

I havent managed to apply these to stocks. I recently bought a fair bit of GDX (the position is marginally bigger and this might have a psychological effect) - I personally find it sslightly harder to trade as it is correlated both to gold and the Stock market also - but I did average in over 1-2 weeks and I am quite happy of my average price (which ended up being lower than the price when I decided to get in).

 

So to cut that long story short, I think if you intend on trading, do not under-estimate psychology and emotions (sorry if that sounds cliche) and scaling in and out of positions is a great tool to alleviate emotional side of trading. Also and very important: do not read too many opinions about the market (ie I would recommend AGAINST reading this forum - at least the gold one too much/often) this really messes up with your head.. Remeber you'll always find bulls, bears and sheeps expressing lots of different opinions.

 

Hope all this helps - I find it pretty hard though but a good training for the mind!

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I sold half my SLW when it doubled in value

 

But the chart still looks ok.

Having said that, I am a bit worried that Gold may not hold these levels,

and I have been taking profits on a few positions

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I sold half my SLW when it doubled in value

 

But the chart still looks ok.

Having said that, I am a bit worried that Gold may not hold these levels,

and I have been taking profits on a few positions

 

 

I sold half my SLW when it doubled in value

 

But the chart still looks ok.

Having said that, I am a bit worried that Gold may not hold these levels,

and I have been taking profits on a few positions

 

 

Looking at this morning action - that seems like a good call.

Where would you see gold headed to?

I see a potential immediate pullback but still an upleg until beginning next year (end Q1-start Q2?).

In terms of Silver I had 10.50 (20 day Moving average and breakout level) as immediate pullback/"load up some more" target - I guess that would translate to 820-840 in Gold.

 

 

Terrible - I go against my own advice of not listening to other people opinions! :lol: I guess I should have added that its always good to follow regularly a few (only) "good and trusted" commentators ;) - which you are part of Dr Bubb...

 

I personally tend to ignore the ultra-bulls (Sinclair, etc.) as they really give you a bullish bias which can be detrimental to your short-term analysis

 

PS - sorry I just realised this is slightly off-topic..

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