Suprised? No, you shouldn't be.
SLW is leveraged to take advantage of silver at almost any price.
IF silver stays the same, we have a company who is paying $3.90 per oz.
Their earnings calculus becomes exponential as silver goes up.
But, it doesn't have to. That's the beauty.
Silver on the other hand must go up to make money.
Clearly, we all think it will, but what if it drifts around $29-31.
Then your coins, bullion all stay about the same.
SLW will go higher as it's intrinsic value catches up to itself.
It is grossly undervalued, IMO.
Not bashing silver at all,I love it, but just making a point that the boys at Merrill Lynch already know.
Some points to consider in the paper/specie discussion:
1. If one day you wake up and find our currency went BLOOOEY during the night, you can take 1 or 2 old silver dimes to a grocery store to buy some beans. You can’t do that with a stock certificate if it is in your broker’s hands, or even if it is in your mattress.
2. I read (but have not researched it) that in the 1930s, when FDR outlawed individual ownership of gold coins & bullion the Gov froze all bank Safety Deposit Boxes which were then to be opened only in the presence of an IRS agent. That sounds outrageous, but still plausible. Could it happen if there is a critical, world-wide shortage of this absolutely essential element? You bet!
3. As someone above mentioned, SLW stock is just paper. Although the company has a market cap around $13 billion, the real value of the stock is not in your hands or your house. Could one of those 23 employees be a devil in disguise? Could be; bye-bye value!
4. Holding hard, heavy, shiny silver in your hand imparts a feeling of security that paper just can’t match.
5. Hmmmmm, think I’ll have a little of both, if you don’t mind. No, scratch that…I’ll have a bunch of both.
As much as I like SLW as a growth stock, it is still paper silver depending on contracts and good corporate behavior. Everyone should hold some physical as in the final tally, it's the only thing that is really REAL
absolutely. I've been buying monster boxes for several years now. It's the best insurance one could have to protect your wealth. I also have a number 1 registry set of 1oz gold coins on PCGS. Numismatist value far outweighs the bullion. I've covered all bases.
If you own a home and have a basement. Have someone install a safe into the ground in concrete.
If it's hidden properly and you have a good alarm system, thieve do NOT like to go into the basement and then have to work!
Just a suggestion, in addition to the bank vaults (I have all).
You are forgetting that SLW has contracts in place that will increse the amount of silver it gets in the future. I read one place that could be a 40% increase. So if everything else remained constant SLW would have a 40% increase in profit. But as you say when that profit gets plowed back in it rises exponentially. Next year they might start paying a dividend. Physical does not pay a dividend. Tis a far far better thing you do than you have done before when you buy SLW.
I'm sure most of us on this board have a few monster boxes hid away. My Au is in my local Bank Safe deposit box but don't feel comfortable with it there. It's just too much to keep at home. I have a guard dog, alarm system, and winchester 12 ga. at the ready but nothing is foolproof. Anyway my safe is so heavy they would have to blow it in order to get inside.