Well one drawback of taking profits off the table is blow off runs like Silver Wheaton (SLW) is experiencing. The Silver ETF (SLW) is up less than 3% so I am not clear why Silver Wheaton is up 11%, but it is quite amazing to watch this sleepy little stock go. I do think as central banks across the world try to 're-inflate' the world with more worthless paper money to help the USA out, these hard assets gain value (as I mentioned I thought gold is going to $1000+ this year) but I am a bit taken aback by this move today :) Can't complain though - 90% of the trick is finding the right companies....
As I wrote when I first bought Silver Wheaton [Adding 2 Weak Dollar Plays]
Instead of buying the gold or silver ETF I bought Silver Wheaton (SLW) which is a company I have traded in the past - very interesting small company, which trades with more volatility than the silver ETF. Earnings are not something I am too interested with; they are profitable but the value of their company simply rises and falls with the value of silver.
With that said, I didn't expect *THIS* level of volatility i.e. silver up 3%, SLW up 11%. I assume the market is telegraphing to us to expect the (predicted) flood of liquidty of paper money coming to a theater near you, as the credit crunch intensifies into 2008. Remember M3 growth (which the Fed started to hide from us about 2 years ago) is booming; which in layman's terms means every dollar you own becomes a bit more worthless as more is printed. Can't wait for the day the peso trades at par with the US dollar. Barry Ritholtz talks about this all the time as well [Money Supply Growth? It's Much Worse than That]
Long Silver Wheaton (but not enough) in fund; no personal position
