I mentioned yesterday gold was looking a bit tired, but silver was hanging in there. It appears the news of Japan moving up their BOJ meeting to "fight the Fed" immediately with more money printing of their own [Japan Outlines Plan for Newest QE, and Moves Up Next BOJ Meeting to Combat Helicopter Ben] has put some life back into this group after it consolidated some huge moves. Gold suddenly is back en vogue.
Rather than buying the silver ETF (or Ultra Silver as I usually do) I decided to go with an old favorite Silver Wheaton (SLW) which is a neat little leveraged company which does not have direct mining risk. Before the silver ETF was around this was my main way to play silver 'in the day'. I have not been in this stock since May 2008. The negative with buying a stock rather than a commodity ETF is the stocks usually trade with the market, so if there ever is a selloff allowed again by the central bank, 'equities' (even of the precious metal kind) can fall even as the precious metal might rally. The last time I played Silver Wheaton I ended up paying for it [February 14, 2008: Silver 3 Months Later - I Picked the Wrong Horse] So it's another flip of the coin which direction you go - commodity versus stock that specializes in commodity.
What is interesting today is these precious metals are rallying WITHOUT a materially weaker dollar. Which is why I believe this news has a lot to do with the Bank of Japan's meeting change... we have central bankers across the developed world acting out of reaction to each other - so as each devalues, then the other .... well you already heard the spiel this morning.
I started a 2.1% exposure on the 'breakout'.
Here is silver....
Here is Silver Wheaton
[Feb 25, 2008: Silver Wheaton Ok Results but some Massive Expansion Opportunities]
Long Silver Wheaton in fund; no personal position
Friday, October 29, 2010
Bookkeeping: Restarting Silver Wheaton (SLW)
Silver ETF|Silver Wheaton|
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows