SLW is all-in "leveraged" bet on silver price so its price should relatively reflect the spot with a certain "multiplier". It doesn't make sense that SLW drops (or raises for that matter) the same as spot price changes. Therefore, it seems to me that the current SLW price is probably 10-15% inflated from speculation that Silver price will recovery (which might happen) but it's not a value buy at the current price level for me. While no one can tell for sure what the price will be tomorrow, I certainly don't feel like paying the premium for the optimism.
Here's the deal Alpha. You can throw out SLW specifics "for the most part", and focus more on what the PM charts look like now and "what" in the world economic environment may change (and roughly when) to reverse the downward spiral in the metals/commodities.
Thats what its all about. Even if silver & gold stabilize at RTQ levels, that isn't going to be good enough to inspire any kind of a sustainable rally in SLW shares or any miner/streamer going forward for the simple reason that earnings are going to just plain "stink" for as long as the PMs linger anywhere near current levels.
Back to SLW. It would take an eternity to recoup the production financing already invested at current levels and worse if the PM trend doesn't at least stabilize. A big IF and when is when a buyable rebound does get underway, SLW will/should "outperform" the miners.
Moral of the story is watch the spot prices daily and listen to commentary connected to what has to happen for a PM rebound "with staying power" NOT short lived dead cat bounces.
we are there now, nothing changed except Fed's statement that economy is looking good and they will "taper IF it continues". reality is almost 8% unemployment, exploding debt and deficits and non stop money printing. GDP was revised just today to an anemic 1.8...and all of that WITH $85 billion a month injected. where do you think we are gonna be if they stop that?