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Silver Wheaton Corp. Message Board

  • chemaes44 chemaes44 Dec 7, 2005 7:20 AM Flag

    Spot Silver Price to SLW.WT correlation

    Spot silver prices correlated nicely with the price of the stock and warrants, until recently that is. It seems GMP manipulation, prior to the dilution news, broke this correlation, most likely because they wanted to keep their price down on the date of close.

    I expect the correlation will once again gain momentum. Based on the previous trend, the warrants should be currently valued at:

    Silver Spot SLW.WT
    7.80 0.500
    7.90 0.525
    8.00 0.550
    8.10 0.575
    8.20 0.600
    8.30 0.625
    8.35 0.638
    8.55 0.688
    8.70 0.725
    8.82 0.755
    9.00 0.800
    10.00 1.050
    11.00 1.300
    12.00 1.550
    14.00 2.050
    16.00 2.550
    18.00 3.050
    20.00 3.550
    22.00 4.050

    I've never looked at support and resistance past 1- 2 years. Does anyone know, if Silver once experienced strong resistance at say $10.50, 20 years ago, does that mean we should look at strong resistance today correlated to today's dollars (so $10.50 = today's $18.90)? I'm leaning towards believing there is no adjustment for today's dollars.


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    • This is almost no possibility of overhead supply issues with silver. Very, very few people would sit on the metal for 15 years and then sell it just as it is beginning to rise.

      For stocks most studies show that after a year, overhead supply issues are mostly moot. 15 years, they are gone.

      An entire generation of investors is going to have to learn about gold and silver as investments. Currently, they are very skepical. In the end, this will turn into a rabid, must have it at any price attitude.

      We are a long way from this currently. Silver is just in the SECOND inning of a long game.

      • 1 Reply to enviro111
      • Enviro et all.

        I was having a little trouble understanding your response. This might have something to do with the lack of clarity in my original post.

        My original post really was asking how does one read support and resistance on a chart where the information is from over 20 years ago? I see a strong resistance/ support line from 1969 to 1988 for silver at roughly 10.50. There is another such line at 9->9.4.

        $10.50 resistance/support twenty years ago is not equal to today's dollars, so, do we adjust the $10.50 resistance/support into today's dollars. I know the fundamentals, I'm just trying to understand the technicals.

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