SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Silver Wheaton (SLW) (Bulls Board)
SLW 20.91+1.3%May 15 5:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JakeStraw who wrote (66)5/4/2011 2:22:33 PM
From: Ken Reidy  Read Replies (1) of 106
 
The suddenness of the decline in SLW and silver is tough to stomach.....but we've seen it before.

Imagine if they raised margin requirements for technology stocks bought on margin when technology shares were in a bubble.....

What I'd love a regulator to look at is who was short the silver mining equities, as well as SLW....and who ramped up their shorts during the last 3 weeks of April. Sadly....there appears to be no regulation in this country for that type of conduct....

SLW's share price is very correlated to SLV.....yet SLW fell $6.98 per share from its high on April 8th to the close on April 29th....while SLV rallied $6.98 per share from its high on April 8th to the close on April 29th....an exact match in the opposite direction for two investments that should trade in the same direction. What are the odds of this?

The two resumed their trading in the same direction between the close on April 29th, and the open on May 2nd.....SLW gapping down $2.42 at the open and SLV gapping down $2.78 at the open on May 2nd. Based on the relationship of the two silver investments between the highs on April 8th and the close on April 29th, why didn't SLW gap up $2.78 per share on May 2nd when SLV gapped down $2.78?!? The concept is laughible of course....just as laughable as the divergence between SLW and the price of silver between April 8th and April 29th.

Many of us who invest in silver mining equities as well as SLW were in the proper place to make solid profits between April 8th and April 29th. We were apparently gamed by what appears to be a corrupt system. Was information leaked as to when margin requirements for silver futures would be increased?

In the long run....it will all fade into the background as Silver likely resumes its price appreciation as the massive amounts of Fiat Currency printed in the past and still printed daily requires.

SLW and the price of Silver should trade in the same direction....remember, SLW is not a miner and does not have the related risks....what exactly was going on between April 8th and 29th?...would make for a good investigation.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext