As the price of gold continues to go up, silver is increasingly being looked at as an investment metal, and not just an industrial one, which has drawn the attention of analysts who are carefully watching companies like Silver Wheaton (NYSE:SLW) and Silvercorp Metals (NYSE:SVM), which had their ratings changed by BMO Capital.
Silver Wheaton, which has a terrific business model, was upgraded from "Market Perform" to "Outperform." Silvercorp Metals was downgraded from "Outperform" to "Market "Perform."
Silver Wheaton closed Friday at $35.15, falling $0.49, or 1.37 percent. BMO has a prict target of $46 on them, raising it from $40.
Silvercopr Metals closed at $11.74, dropping $0.54, or 4.40 percent.
Showing posts with label Silver Investing. Show all posts
Showing posts with label Silver Investing. Show all posts
Monday, November 29, 2010
Tuesday, November 9, 2010
Silver Wheaton (NYSE:SLW): How High Can it Go?
Every time you hear about investing in silver and Silver Wheaton (NYSE:SLW), you get the usual concerns on how high and quickly the share price of the silver royalty company have risen.
While there's no doubt those who invested a year ago and longer are making a killing which current investors won't make, there seems to be a lot of upward movement left in silver, and Silver Wheaton will ride that movement as long as the macroeconomic conditions continue, and Ben Bernanke can't help himself from pouring billions of U.S. dollars into the market.
As a matter of fact, silver is about to take off in a way it hasn't for some time, and most silver miners will ride that up as well.
That means those with lower entry points will probably outperform Silver Wheaton because of their hefty share price, although one has to keep their eye on the unique business model Silver Wheaton operates, as they are much different than a pure silver mining company.
The more important question isn't how high Silver Wheaton can go, as far as share price, but how they'll perform against other peers in the sector.
Silver Wheaton also has some safety built into it because you can look at existing contracts and their terms with companies, include the price of silver and its expected movement, and get a pretty accurate idea of where it's headed.
Silver mining companies aren't as easy to investigate and come to conclusions about, and so more work is required there, and there's also more risk in them as far as variables are concerned.
Silver Wheaton will continue to perform strongly, but there are a lot better entry points to invest in silver now, although they'll carry more risk.
I think the price movement of silver will overcome the operational costs, for the most part, for the majority of silver miners, so more than likely they'll surpass the performance of Silver Wheaton if investors get in now.
That's a general assessment, and there can obviously be exceptions to this.
For Silver Wheaton, investors won't lose by investing in them in any way, as it's safer and still has a lot of good upside, but it won't perform like some of the silver miners who are now starting their long, upward run.
While there's no doubt those who invested a year ago and longer are making a killing which current investors won't make, there seems to be a lot of upward movement left in silver, and Silver Wheaton will ride that movement as long as the macroeconomic conditions continue, and Ben Bernanke can't help himself from pouring billions of U.S. dollars into the market.
As a matter of fact, silver is about to take off in a way it hasn't for some time, and most silver miners will ride that up as well.
That means those with lower entry points will probably outperform Silver Wheaton because of their hefty share price, although one has to keep their eye on the unique business model Silver Wheaton operates, as they are much different than a pure silver mining company.
The more important question isn't how high Silver Wheaton can go, as far as share price, but how they'll perform against other peers in the sector.
Silver Wheaton also has some safety built into it because you can look at existing contracts and their terms with companies, include the price of silver and its expected movement, and get a pretty accurate idea of where it's headed.
Silver mining companies aren't as easy to investigate and come to conclusions about, and so more work is required there, and there's also more risk in them as far as variables are concerned.
Silver Wheaton will continue to perform strongly, but there are a lot better entry points to invest in silver now, although they'll carry more risk.
I think the price movement of silver will overcome the operational costs, for the most part, for the majority of silver miners, so more than likely they'll surpass the performance of Silver Wheaton if investors get in now.
That's a general assessment, and there can obviously be exceptions to this.
For Silver Wheaton, investors won't lose by investing in them in any way, as it's safer and still has a lot of good upside, but it won't perform like some of the silver miners who are now starting their long, upward run.
Has Endeavour Silver's (AMEX:EXK), MAG Silver's (AMEX:MVG), and Silvercorp Metals' (NYSE:SVM) Time Come?
Now that silver has definitely turned the corner and is beginning to soar, the lagging silver miners like Endeavour Silver (AMEX:EXK), MAG Silver (AMEX:MVG) and Silvercorp Metals (NYSE:SVM) are about to have their moment, and investors should strongly benefit from them and others with strong exposure to silver, as it should begin to outperform gold going forward, even though gold will remain a great investment, as well as many gold mining companies.
Silver miners in the last quarter who have reported so far have done well, and that was in far less opportune times. That has changed over the last several weeks, and the ratio between gold and silver prices is beginning to narrow back to historical norms, and that means silver prices are rising as measured by percentages, faster than gold is.
The recent earnings report from Pan American Silver (Nasdaq:PAAS) is one example of that.
Endeavour Silver traded at $6.61, gaining $0.20, or 3.12 percent at 1:08 PM EST. Mag Silver was up to $10.30, increasing $0.30, or 3 percent. Silvercorp Metals Inc rose to $12.97, gaining $0.25, or 1.97 percent.
There is no doubt the time for silver miners place in the sun is here, and the overall sector looks good, but we still need to look at those with best cost controls in place, even though the increase in silver price in the near term will be forgiving to those with higher costs.
Silver miners in the last quarter who have reported so far have done well, and that was in far less opportune times. That has changed over the last several weeks, and the ratio between gold and silver prices is beginning to narrow back to historical norms, and that means silver prices are rising as measured by percentages, faster than gold is.
The recent earnings report from Pan American Silver (Nasdaq:PAAS) is one example of that.
Endeavour Silver traded at $6.61, gaining $0.20, or 3.12 percent at 1:08 PM EST. Mag Silver was up to $10.30, increasing $0.30, or 3 percent. Silvercorp Metals Inc rose to $12.97, gaining $0.25, or 1.97 percent.
There is no doubt the time for silver miners place in the sun is here, and the overall sector looks good, but we still need to look at those with best cost controls in place, even though the increase in silver price in the near term will be forgiving to those with higher costs.
Monday, November 8, 2010
Hecla Mining (NYSE:HL) Explodes as Silver Ready to Shine
Silver has been lagging the price movement of gold for some time, but that has started to change lately, and silver miners like Hecla Mining Company (NYSE:HL) are starting to move up with silver prices, as gold investors look to alternatives as gold prices soar to record levels on consistent basis.
Historically when gold reaches certain levels, investors tend to migrate to silver because it will usually outperform gold at certain price points, and that seems to be approaching now, although both are excellent investments at this time.
Over the last five trading days Hecla seems to be making a major move, and today are surged to $8.75 a share, gaining $0.82, or 10.34 percent at 2:28 PM EST.
Once more investors see this trend developing, we will probably see an entire market sector push up again, with silver miners outperforming gold miners in many cases.
Either way, it's doubtful investors will lose one way or the other, but silver will probably become the better play in most cases, although there are some gold miners which could do as well going forward.
Historically when gold reaches certain levels, investors tend to migrate to silver because it will usually outperform gold at certain price points, and that seems to be approaching now, although both are excellent investments at this time.
Over the last five trading days Hecla seems to be making a major move, and today are surged to $8.75 a share, gaining $0.82, or 10.34 percent at 2:28 PM EST.
Once more investors see this trend developing, we will probably see an entire market sector push up again, with silver miners outperforming gold miners in many cases.
Either way, it's doubtful investors will lose one way or the other, but silver will probably become the better play in most cases, although there are some gold miners which could do as well going forward.
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