{"id":4221,"date":"2011-03-05T02:21:38","date_gmt":"2011-03-05T07:21:38","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=4221"},"modified":"2011-03-05T06:22:36","modified_gmt":"2011-03-05T11:22:36","slug":"silver-wheaton","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2011\/03\/05\/silver-wheaton\/","title":{"rendered":"Silver Wheaton CEO Not Thinking About Hedging Silver Until $50"},"content":{"rendered":"

The number $50 per ounce appeared in another discussion about silver. I first came across this target in James Turk’s theory about three stages for silver’s bull market<\/a> with stage 2 beginning at $50. This time $50\/ounce came up in an interview with Silver Wheaton’s CEO, Peter Barnes, as he discussed SLW’s earnings results on CNBC<\/a> (video below). <\/p>\n

Barnes noted that some “reputable banks” have made predictions for silver to hit $50\/ounce by the end of the year. He thinks silver will definitely go through $50 in the next 2-3 years, but it “could be quicker.” Barnes’s bullishness was confirmed when he stated that hedging the company’s silver is nowhere on the horizon; hedging might<\/strong> be considered once silver hits $50. (Silver closed at $35.33 on Friday, March 4).<\/p>\n

Silver’s bull run continues apace, and I am quite surprised that SLV, the iShares Silver Trust, is already up 10% since I was compelled to go to Plan B for rebuilding my silver positions<\/a>. While Pan American Silver Corp (PAAS) has to-date been the company I use to trade around a core silver position with SLV, I clearly need to give SLW more serious thought. For example, PAAS has not yet hit new 52-week highs, and SLW did so on Monday. Moreover, SLW presented a very compelling case for its shares over SLV in a corporate presentation released on Wednesday<\/a>. Whereas both SLV and SLW give investors a concentrated exposure to silver, SLW provides five other benefits that SLV lacks (see slide #7):<\/p>\n