Short term, meaning daily, weekly and even monthly there are technical and/or fundamental reasons for this to move one way or another.
It is a publicly traded "stock" so it will also follow the markets to some degree.
It is also basically a play on Silver,and now gold.
After this recent Vale contact is analyzed and assuming equity market price stability (no huge volatile moves),the PPS in the coming months and years will be directly related to the price of silver and gold,as well as the general trend in equities.
One fundamental fact is the volume in the markets has been relatively light. And, most of that volume is based on trading, and certainly not investing by the general public.
A HUGE amount of money in 401ks is sitting in money market funds yielding Zilcharoony.
Only recently, for the past 4 weeks have we started to see inflows into mutual funds.
I believe this will increase and continue. This new money andold money getting back into the markets will move indexes higher, to new records.
Couple that with the extraordinary money supply, continued printing, and other countries all joining in to devalue their currency is creating this race to the bottom.
It may not end well.Many on this board agree with that.
But the race will continue for years.
In that environment, stocks will do well.
Commodities will do well.
And stocks that are tied into commodities should do extraordinarily well.
Remember,I'm not speaking about intraday trading.
I'm speaking of creating wealth over several years.
All joking aside and in my very own opinion and should not be taken as advice.
"It is also basically a play on Silver,and now gold."
I like the sound of that.
With the advent of seriously becoming a gold streamer, too, does SLW offer to be a more stable investment or should we consider that it will accentuate the volatility of the ride we're on?
Lately, with AG & AU moving counter to one another I'd say it ought to have a stabilizing effect and one that will, over the near term at any rate, add value (perhaps even a scintilla of prestige) to our positions.
I don't worry about the confusion for the market, figuring out if SLW is a Silver Streamer or a Gold Streamer. I don't think it matters at all.
personally, I think we're in for a wild ride going forward. whenever the Fed is actively printing & not somehow "sterilizing" QE, silver & gold have been quite volatile. from late 2010 thru the first half of 2011 was insane & that increased the Fed's balance by "only" 25%. QEforever has already increased it by over 3% since the first of the year. even last year when the Fed's balance sheet was nearly unchanged we saw the price of silver average $31 with moves of about 13% to the upside & downside. I'm thinking we could see average $40 silver with moves of +/- 20% or more this year from there. but hey, that's just my opinion & EVERYONE has one... right?