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SILVER WHEATON CORP. T.SLW

"Silver Wheaton is a pure, unhedged paper proxy on silver prices with a unique business model. The company purchases silver for sale through long-term purchase contracts from counterparties. Currently, the company has long-term silver purchase contracts with more than a dozen mines. Silver Wheaton purchased and sold roughly 28 million silver-equivalent ounces in 2012 through its purchase sales contracts."


TSX:SLW - Post by User

Bullboard Posts
Comment by doomz78on Jan 01, 2013 9:04pm
303 Views
Post# 20787292

RE: Silver versus gold leverage

RE: Silver versus gold leverage

So SLW pays 5$/ounce.  Silver is at 30$/ounce.  So if you divide 5 by 30 you get 16.67%.  So if you minus 100 by 16.67 you get 83.33% margin.  For SLW.  So you only pay 16.67% of the spot price of silver and you profit 83.33% on every ounce. 

Now SAND.  You pay 450$/ounce of gold.  Gold is at roughly 1660$/ounce.  27.10%.  So if you minus 100 by 27.10 you get 72.90% Margin.  

So SLW margin 83.33% at these levels.  SAND 72.90%.   SilverWheaton is better.  You get alot more torque on SilverWheaton then any other streaming company.  Unless Franco, Royal...  Or any other streamer are more leveraged.  Wich I doubt. 

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