To recap, silver is among the most volatile assets in the world. It's half precious metal like gold, half industrial metal like copper... so its price fluctuates wildly along with currency fears, factory production, and interest rates.
As we like to say around the office: If all assets were patients in a mental ward, bonds would be the guy who sits silently in the corner and stares out the window. Stocks would be the guy who wanders the hall and mumbles to himself. Silver would be the guy they keep in the padded room all day. The companies who mine the stuff soar when folks smell inflation and currency mismanagement.
Today's chart shows this idea at work. It displays the 2009 price action of one of our favorite silver stocks, Silver Wheaton (SLW). In response to rising silver prices, SLW has gained 162% this year. If the government's funny-money scheme turns out badly, the gains made this year in SLW are only the beginning.
As we like to say around the office: If all assets were patients in a mental ward, bonds would be the guy who sits silently in the corner and stares out the window. Stocks would be the guy who wanders the hall and mumbles to himself. Silver would be the guy they keep in the padded room all day. The companies who mine the stuff soar when folks smell inflation and currency mismanagement.
Today's chart shows this idea at work. It displays the 2009 price action of one of our favorite silver stocks, Silver Wheaton (SLW). In response to rising silver prices, SLW has gained 162% this year. If the government's funny-money scheme turns out badly, the gains made this year in SLW are only the beginning.
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