Can SLW Survive and Thrive at better than 20 / oz?
I bought into SLW back on the mid-april Silver price drop.
I'm trying to decide if this is a "longer" term investment or a quick trade or some combination... I'm not stuck in "buy and hold" mode these days at all.
Recent articles from Seeking Alpha and other sources seem to be largely bullish on the price of Silver, YET I cannot see any real sign of the bounce I have been rather expecting in Silver Price(only a classic 'dead cat' bounce). And frankly I see the big factor of QE being not positive, but largely negative for commodities in the near term of say the next 6 months.
THEN, tonight, some new thoughts started flowing from the jumble of information I've had time to gather about SLW - it was founded in 2004. Silver Prices in 2004 AVERAGED 6.66! And SLW not only wrote their contracts on those prices but THRIVED from 2004 to 2009 (over half of their corporate life) at a 2004 to 2009 range of 6.66 to 14.99 MAX in that period (average prices for the years).
I'm really not sure how conservative SLW has been in recent years, and looking back now, I'm sure there are some things that going to have turned negative, but the simple FACT that:
**From 2004 to 2009 SLW genuinely THRIVED on prices averaging LESS than ONE HALF of todays prices!**
I'm really not sure what I'm missing, and no doubt that it will be natural to focus on the last contracts written as this is where the worry is, but for all the messages here, and informative articles coming out on the price of Silver, and positive mentions of SLW, I don't recall the above information being expressed in any form.
So this freshly baked SLW shareholder is tempted, at this moment anyway, to stick around and see what happens, which is interesting because I had pretty much decided today to take my small gain and run earlier today watching the price of weakly "trying and failing" to break over 24 again and again...