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Silver Wheaton Corp. Message Board

  • Dimitri72 Dimitri72 Dec 18, 2010 8:27 PM Flag

    Gold Silver Ratio

    Current Gold to Silver ratio is 47 to 1 ($1374 / $29).

    Current GLD market cap $57 Billion
    Current SLV market cap $9 Billion

    Current Gold to Silver ETF ratio 6 to 1 (57 / 9)

    Buying a Gold or Silver ETF is the people's free will and shows the demand levels between the two metals. The people (the real market) are telling us the real ratio of gold to silver should be 6 to 1 instead of 47 to 1.
    There is obvious manipulation in the price of silver.

    The price of silver will eventually go to $229 an ounce (1374 / 6)

    Free markets will eventually prevail....they always do.

    Silver Wheaton at these prices are a gift

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • What silvshit doesn't post is what I was alluding to.
      They will be selling MORE silver next quarter and as the POS goes higher, his numbers are a thing of the past.
      MY point is, Wall Street has NOT priced this in yet.
      Furthermore, we all must understand the real driver for silver and gold are the DOLLAR.
      Durable Goods orders this week are more than likely to have a dampening effect on the decent economic news of late.
      Future stimuli are not out of the picture as many would have you believe.
      Weak Dollar = stronger PM prices.

      Couple weak dollar, stronger PM prices with Weak dollar = stroner equity prices coupled with increase in production for SLW over next 12 months and we have a very healthy environment for strong gains in SLW and other select AG/AU miners who do NOT hedge.
      GL

    • What silvshit doesn't post is what I was alluding to.
      They will be selling MORE silver next quarter and as the POS goes higher, his numbers are a thing of the past.
      MY point is, Wall Street has NOT priced this in yet.
      Furthermore, we all must understand the real driver for silver and gold are the DOLLAR.
      Durable Goods orders this week are more than likely to have a dampening effect on the decent economic news of late.
      Future stimuli are not out of the picture as many would have you believe.
      Weak Dollar = stronger PM prices.

      Couple weak dollar, stroner PM prices with Weak dollar = stroner equity prices coupled with increase in production for SLW over next 12 months and we have a very healthy environment for strong gains in SLW and other select AG/AU miners who do NOT hedge.
      GL

    • Such a ridiculous and absurd theory.

    • After the next quarterly report, you willl find out just how far off you are.
      You guys have been applying a multiple for every $1.00 silver goes up, how that applies to profit for SLW. Many say for each dollar silver goes up, it increases SLW profit by $1. to $1.90
      SLW's cost per OZ = $3.90.
      If silver goes up 1.00, their profit is increased by close to $1.00 assuming they produce the same amount, but what % does that represent of their cost basis as the POS goes up AND production increases?
      In a quarter or maybe 2, if things keep up, Wall Street will blow this thing up up and away.

      • 2 Replies to cmegladon
      • You've hit something we don't talk enough about--the bottom line of fixed costs and paid for loans leaves SLW with a penny for each penny earned in addition to whatever the current price of silver is--it ALL goes to the bottom line. The increase is parabolic, not incremental.

        That may be why the 2X rule works.

      • CME is a waste of time. His posts are worthless. After I post this, he's on ignore.

        On a quarterly basis, SLW is selling 6 million ounces currently. Every $1 in the AVERAGE POS for the quarter, is worth $6 million this quarter. If the AVG POS is up $6 from last quarter, SLW will make $36 million more than last quarter, or 10 cents/share more than last quarter.

        The EPS forecast reflect exactly that.

        CME you were a total wate of my time. It'll be nice making your ignorant posts dissapear.

    • GLD and SLV do not represent gold and silver. They are paper plays only and do represent the real market or people who buy PM as security against monetary collapse.

      SLW is a two to one leverage on the POS. Holding silver does not show a profit unles POS increases. If the POS did not increase SLW would still show a profit and the profits would still increase as more mines come online.

      So you should not compare SLW to SLV.

 
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