holding slw is holding a stock whose underlying commodity is falling....The premium given to slw at this juncture over spot silver is simply not sustainable....Good luck...There are underlying issues with SLW pertaining to their future streaming portfolio....mainly the Pascua Lama mine that is NOT owned by barrick....
When the price of silver rises SLW rises. When the price of silver drops SLW drops.The price correlation of SLW stock price for the most part has been fairly close to spot for several years until recently.Hedge funds have been pushing SLW hard for the last several months predicated on the FEDS QE infinity. Well, that hasnt played out and now appears that fundemental thesis is temporarily broken. People in the commodity markets have been riding cheap money for over 5 years.The hardest part is to understand when that change is taking place.Austerity is NOT inflationary. Higher taxes are NOT inflationary.Government decreasing spending is NOT inflationary.Low wage jobs are NOT inflationary.Rentals are NOT inflationary.
It's more like 2 to 1 when SLW recovered from $3 to about $21, then about 1.5 to one till the early 30's. Recently it has been closer to one to one, then it seems to have decoupled from silver about three four months ago Still up days 2X the POS are coming back in vogue.
It's a ludicrous correlation, but sometimes ludicrous works.