Cup half full: Silver Wheaton (NYSE:SLW) packs on gains as gold prices rocket
Today's Financial News - Posted November 11, 2009
Shares of silver-related companies like Silver Wheaton (NYSE:SLW) rallied in response to gold’s record-setting prices.
by J. Christoph Amberger
Baltimore, MD — TFN: Gold prices jumped to new records trading up to $1,117.65 per ounce as the United States continues its heedless rush into debt… the dollar declined to a 15-month low… and China plows every red cent it makes into hoarding commodities.
Silver stocks rallied. This was pertly in response to news that New York-based asset manager Van Eck Global launched its new Market Vectors Junior Gold Miners ETF (NYSE Arca:GDXJ).
This ETF provides a handy basket of juniors gold and precious metals miners — for the most part small- and mid-cap mining companies .
One of our TFN Hot Stock Confidential favorites, Silver Wheaton (NYSE:SLW), which we had recommended as a long-term play on silver demand on May 27 at $9.66, clocked inat a 60% gain today. The company just reported solid Q3 profits and sales increases.
Our most recent HSC silver play, Silvercorp Metals Inc. (NYSE:SVM), soared over 5% today and is now up 13% over our recorded entry price from October 15. (It’s included in the GDXJ junior miner basket!) We just moved it to a Hold — as HSC members had plenty of opportunity to buy this stock at even lower prices.
SLW is the last of the three original silver picks we recommended last May that we’re still holding on to.
We’ve deftly used silver’s rambunctious trading history this year to generate solid gains on in… such as:
* 20% on iShares Silver Trust ETF (NYS:SLV) between 04/23/2009 and 06/03/2009;
* 27% on @SLVJR options between 05/27/2009 and 06/03/2009;
* 20% on Anglogold Ashanti Ltd. (NYSE:AU) between 04/02/2009 and 06/01/2009;
* 52% on Hecla Mining (NYSE:HL) between 05/27/2009 and 10/08/2009;
* and 39% on Coeur dAlene Mines Corp. (NYSE:CDE) between 05/27/2009 and 09/14/2009.
You’ll notice that the gains taken on most of these stocks actually surpass the gains that the underlying metal prices have produced since January 1.
We continue to consider current price records for gold and silver part of a bubble that’s being fed mainly by the United States’ abdication of fiscal responsibility and economic sense. Like any other asset bubble, we’re happy to profit from this one… as long as it lasts!
To become a member of TFN’s premium service, Hot Stock Confidential, simply click here…
Next Article: What’s up with SpongeTech?
Posted by J. Christoph Amberger · Filed Under Featuring..., Gold and Resources
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