Monday, March 27, 2006


Silver Wheaton is a mining company with 100% of its revenue from silver production and it expects to sell approximately 15 million ounces of silver in 2006 at a cash cost of $3.90 per ounce. The Company has agreed to purchase all the silver production from the Luismin Mines in Mexico and the Zinkgruvan Mine in Sweden. It has also agreed to buy 4.75 million ounces of silver per year from the Yauliyacu Mine in Peru. Silver Wheaton is unhedged and well positioned for further growth.

Everyone have something to say about SILVER WHEATON CORP (AMEX:SLW) , This stock is very popular with traders who look for a silver exposure. Caution is advised as the market capital is already above 2 B $ and much higher silver prices / higher production are needed to justify such high valuation. Anyway the chart looks very strong and further gain should be expected. If and when silver correction happen don’t be surprised to see a semi crash correction.

The bottom line : This is a momentum play with strong fundamentals that could go much higher but once momentum change it could go ugly temporarily.

Volume is raising, MACD & RSI looking bullish, support around 10$ then 8$.

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