> Silver Wheaton

Silver Wheaton

Posted on Thursday, October 25, 2012 | No Comments

After a massive low, this company seems to be doing some justice regarding increasing stock prices. It is virtually dominating competitors, with the exception of First Majestic Silver (TSX: FR). Also, its stock prices closely correlates with S&P. Whether investing in precious metals is a good idea or not, many consider it to be an excellent hedge against inflation. If you know this or not, more money supply being injected into the economy allows for gold/silver prices to inevitably increase. This is happening as we speak especially in the Asian countries.

Silver Wheaton has been closing tons of deals lately, so people are definitely going to be optimistic. The company risk is generally low, since it doesn't own mines at all -- just the silver. Its market cap is around $13.5 bln, where the average silver company is around $4.5bln. This is an enormous difference, and this goes hand in hand with their earnings that have been increasing over the past few years.

Their EPS is expected to skyrocket for 2013, so many feel this is the best time to buy in. However, it is just important to note that after the price goes up, get out as fast as you can. A goal of buying in around $37 and selling at $43 may very well be a viable choice. As many know, after silver goes up, it goes down like crazy. You make the choice.

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