Yesterday, the share price of one of the big dogs among silver miners – actually a streaming company that purchases royalty interests in the production of other silver miners – boomed +7.4%. Silver Wheaton, which has a $10 billion market cap, reported higher than expected revenue and earnings.
In recent days and weeks, I have been adding to my silver miners based on strength in their charts.
The Silver (May futures) price is presently around 17.60, which is a tad higher than the 16.87 cycle low. My tarot card reader tells me that a bull cycle might be in the cards – with 18 soon and 18.50 soon after that likely. A technical upside break-out would be 19 and then 20 and then 20.80. Above the cloud is blue sky since the January 2012 high was ~34.50.
In any case, a price of 19/oz would have these silver stocks at much higher share price levels, which is what I think will occur.
Finviz.com has a list of the better-known names, with data you need to make an informed decision.
http://finviz.com/screener.ashx?v=111&t=SLW,PAAS,HL,CDE,AG,SSRI,EXK,AXU,ASM,FSM
Note that SLW is about as large in market cap as the other 9 combined. However, in the UK market, Fresnillo PLC (FRES.L) is slightly larger in market cap than Silver Wheaton (SLW in US and Toronto).
My only positions in this group are Fortuna Silver (FSM USD5.08) and First Majestic Silver (AG USD7.91), which I presently hold. That is not a recommendation.
http://finviz.com/screener.ashx?v=321&t=SLW,PAAS,HL,CDE,AG,SSRI,EXK,AXU,ASM,FSM
The news was very good for SLW. Note that the corporate name will be changing from Silver Wheaton to Wheaton Precious Metals Corp.
http://finviz.com/screener.ashx?v=141&t=SLW,PAAS,HL,CDE,AG,SSRI,EXK,AXU,ASM,FSM
Note the very high levels of volatility, which is a good thing for day traders, but tough on the nerves for most investors.
SLW on the NYSE at USD21.41 has resistance at 23 and 25, but might reach 28 in this near-term cycle, which would result in terrific gains if the bull cycle is a strong one. However, the other names on this list are likely to have larger percentage gains.
I believe the equity market today is nearing a peak, which, as readers know from my blogging since 2004, usually peaks with a big party where the Goldminers are last ones off the dance floor. The silver miners are the heartiest of the party goers.
They will likely be the silver lining in the dark clouds I think are on the horizon.
/Bill
