Comparing SLW vs SLV over 2 years (bascially since SLV started) shows SLW with a minor gain. Where's the leverage with SLW over SLV?
SLV has outperformed in the last 3 and 6 month periods so it appears thos in know, knew about the GG sale.
I believe in the long term prospects of silver and SLW is better than miners like CDE due to less risk, but there just appears to be no substantial leverage over silver itself. So why take any risk and why not just go with SLV?
I think this is a legitimate question. And I am not short. I'd even wager that I am an indirect SLW long due to some mutual funds I hold.
the reason to on SLW and SLW warrants instead of SLV...
The reasons for SLW have been covered pretty well in the previous posts....
I have yet to hear about the negative side to holding The ETF SLV run by the scam artist Barclay's...they say they have bullion to back those shares ...but....what if they lease out that bulllion thinking they can have their cake and eat it too....and then find that they can't get it back when investors want delivery of the physical bullion...they would need to go in the open market and get it ...plus there is going to be a shortage of silver soon if not already...I do not trust any of the finanicial Brokers right now with the CDO blow-up....they will do anything to cover their losses....so the investor that can get a certificate from SLV to prove their investment exists may not have to stand at "Time's Square" holding the empty bag with the other Whores hangin' out....
re the misleading charts: the only reason SLW ran up at that time (I was a big holder then) was due to the ETF buying tons of silver before going public.
So it's kind of like the Heisenberg Uncertainty Principle. So I still stick with my chart point.
Re leverage: I think another poster fully answered my question and that is to invest in SLW warrants. When they start trading on US exchanges, I will. Thanks for the answer.
If you want leverage buy SLW warrants. They go up exponetially in relation to the stock price. Say SLW goes up a dollar the warrant could go up a dollar too but that would be a 50% increase instead of a 10% increase of so for the stock.
The real, consistent leverage began last April with the announcement of Penisquito. BUT - the leverage was completely DESTROYED by the GG share sale. It will take time to repair, and I believe it will, but right now there are forces at work digesting the new float and who knows when they will be done. Today was an indication that the leverage will return but as you can see volume is double what it was and this is a different beast entirely now. The days of happy swing trading this stock may be over...and she will behave more like a behemoth major now ala GG and ABX. One thing is certain the old days are GONE and this is a new animal. It will take getting used to. Still long but I'm playing the palladium market for the time being and to stay sane.
You're the one who can't read a chart. You referenced a 2-year chart comparing SLV and SLW. If you simplemindedly just chart SLW and SLV on the same chart, it looks like SLW gained 100% vs. SLV 80%. Not bad, but it severely minimizes SLW's real gains. At the time SLV issued, SLW had already gained 50% and was at a relative high. That means that, on that chart, SLV starts out up 50%. Look at two separate 2-year charts for SLV and SLW and you'll see that SLW gained over 100%, SLV gained less than 30%.
SLW 2 year chart:
SLV 2 year chart:
FYI, US GAAP uses fully diluted shares
I'd wager in the next 2 years, we will actually see POS at $30 so we can see what the price of SLW is
I remember when SLW rose ABOVE the POS for the first time over 1 year ago (or 18 months?) when silver was $12. Now silver is $17 and SLW is $15.
I guess we agree to disagree. I don't see SLW as the leveraged silver play but we both agree POS is going higher.
Look, I know why the chart starts where it does. Your reasoning is still faulty. Lets make it real easy for you. Since May 1 2006 here is the results for SLV and SLW
SLW: 37% gain
SLV: 22% gain
SLW has nearly twice the return of SLV. Pretty decent leverage. But like I said, who cares. All you need to make money is that precious volatility. You can keep worrying about the leverage all you want, I'll keep raking in the cash. How bout that? Sure sucks all those capital gains on my tax return though... Booyah!