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Silver Wheaton Corp. Message Board

  • flight_level_350 flight_level_350 Oct 7, 2005 12:58 PM Flag

    SLW dumb easy on me!

    I've been looking at SLW for quite some time, and perhaps I've already missed "the" spike, but tell me, does Silver Wheaton act as a middleman in the metals trade, or does the firm own the mines they perform transactions for (i.e Luismin mines in Mexico and the Zinkgruvan Mine in Sweden). What prevents these mines from entering the silver market themselves without the assistance of SLW?

    Thanks for any comments!

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    • I dont trade it cause its too hard to pick tops or bottoms. Trades in a pretty narrow range. This has to be the biggest pop i've seen since i bought in.
      If you like GG i cant see any reason not to own the silver part instead. Silver has yet to catch up to gold and in my opinion no better silver stock to own.
      Upturn and downturns are for professionals and I dont have the time or the patience and who wants to pay the taxes. not me.

    • Trading in and out is very difficult to get right 100% time. Furthermore why give the irs 40% (of profit) everytime you do? Better off to hold the stock till you have realized a profit in line with A) your expectations and B) market conditions. IMHO. This is what I do. If I would have sold back in late 2003 some of my PM holdings I would have recorded nice profits and could have gotten back in cheaper its true. And many ,many folks did. Everyone was talikng about the correction comming in PM stocks however most ( including myself) did not see it was going to be as deep a correction as it was. It's all good. I'm young, so time is on my side. I believe we will see silver got o $12 and maybe much higher. I will watch for SLW to reach $8 or close. Now in a PM bull mkt the third phase can and most likely will be explosive with stocks and metals reachin ridiculous highs. I will probably keep some $$ in for that ride. I have a goal in mind and do not want greed to cloud my decisions.
      Just one mans perspective, hope it helps.

    • tkinne1031 Oct 8, 2005 10:40 AM Flag

      do you trade it on the swings or are you just letting it ride? I have considered taking profit I bought at the ipo on the amex and am up 25%+ commision cost, should I wait or get a little out and buy back on a down turn...
      Anyone feel free to respond.
      ps. love the stock so am willing to do either

    • Although there are often dumb answers, lol ...

      You are fairly close in your description of SLW being the middle man, the wholesaler between the producer and the consumer ...

      SLW has arrangements with two miners, Goldcorp and Lundin, to purchase all their silver production from specific mines for the life-of-mine at a fixed cost of $3.90/oz ... this cost is re-established every 3 or 4 years to reflect an increase or a decrease over the period, but that does not concern us at this moment ...

      These two miners currently produce about 10+ million oz silver per year, they sell it to SLW at the fixed cost of $3.90 and SLW sells it to the spot market at the spot price, currently $7.60+ ...

      Please note that SLW paid millions and millions of dollars for these contracts which effectively gave Goldcorp and Lundin their silver profits over the next 20 years up front and in exchange SLW gets the potential profit from an increase in the price of silver over that time ...

      And so far, so good ...

      SLW is using its profits to invest in other silver companies and last month acquired a large position in Bear Creek Mines ... I doubt we will see more "silver purchases" like what happened with Goldcorp and Luismin as they are very dilutive and costly ...

      This is a pure play on silver ...


    • What this really is amts to a gold company that wants to be identified as a pure play that has broken off its silver and made another company to do this. I call SLW the trailing stock to GG. The charts read about identical. Its the best of both worlds. This board should be buzzin.

    • GG owns the mines and also a majority of SLW with a life time contract that entitles SLW to buy silver at $3.90.
      Telfer is on the boards of both companies.

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