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« Reduced Exposure to Endeavour Silver Corporation | Main | Endeavour Silver Corporation’s Stock Price fails to reflect achievements »

Hecla Mining Company sold Silver Wheaton Corporation bought

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As we have discussed a number of times in such posts as Are Silver Stocks worth the effort? today we commenced a revamp of our portfolio of silver stocks. We sold 90% of our stake in Hecla Mining Company (HL) for an average price of $5.08 and redeployed the funds by acquiring more of Silver Wheaton Corporation (SLW) stock for an average price of $19.76.

We have waited patiently for some time now for Hecla to improve its performance but as the charts showed on the above mentioned article this has not happened to our liking and our patience has come to an end. On the other hand Silver Wheaton appears to us to be the best vehicle for maximizing our profits in this silver bull market so we had no hesitation in transferring the funds from one company to the other. You could argue that we should have waited for a 'dip' in the price of Silver Wheaton's stock or for a better chart set-up, however, we are approaching the seasonally strong time of the year for precious metals and so we wanted to re-position ourselves accordingly.

Tomorrow we intend to continue with our strategy of reducing our exposure to those stocks that we view as not performing adequately enough and again we will probably 'park' the funds in Silver Wheaton Corporation. However there are a number of options trades coming onto our radar so some of the cash may be held until such opportunities ripen before we pounce.

We would like to stress the importance of reviewing your portfolio and implementing the fine tuning that you believe is best for you. We are all different with different objectives and differing aversions to risk etc, so do the work and satisfy yourself that you are ready for what the market will throw at us.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09.

On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days.

Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per trade. Click here to sign up or find out more. have been rather fortunate to close both the $15.00 and the $16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

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Reader Comments (10)

What does everyone think about staying invested and holding PM stocks through the expected stock market crash this Fall, versus selling PM stocks now with the intent of buying them back at a much cheaper price after the crash? And yes, I'm also invested in physical silver.

The groups comments are greatly appreciated as i have been wrestling with this for quite awhile.

August 10, 2010 | Unregistered Commenterobiwan

A quote from Gains Pains and Capital:

I know this is not what the Gold bugs want to hear, but during systemic Crises, just about every investment on the planet plunges while the US Dollar and Treasuries rally. Of course, this time around if another 2008-type event hits, it will undoubtedly involve or be focused on sovereign debt. So this raises the potential that Treasuries, particularly those on the long-end of the yield curve, could be hammered as well as all other assets outside the Dollar. This is worth keeping in mind for those who view Treasuries as a safe haven.

August 10, 2010 | Unregistered CommenterSilver Prices

If I were concerned my SLW {for instance } was going to crash { for instance in Oct, } I'd buy put options , close to the money , a month or more out from when I thought crash was going to occur. If I'd done this just prior to 2008 crash, I'd be richer , mucho. Than if crash occurs , sell options , buy SLW on cheap . If no crash , SLW up . options { portfolio insurance } expires. You spent some dough but reduced your risk, ya did good. With the elections coming up , crash this fall may be postponed, somehow . Ought to be very interesting.

August 10, 2010 | Unregistered Commenterrich


We would all be a lot richer with the benefit of hindsight, but we don't have it.

We are watching for signs of a crash, but it is by no means certain, as it stands we are of the opinion that gold and silver will rally on the back QE2, et al.

August 10, 2010 | Unregistered CommenterSilver Prices

Yes, we have been waiting for a market decline for over a year now.

August 11, 2010 | Unregistered CommenterJerrold Minyard

There is a gap on Hecla minning. around the $1.79 range. I think that it will be filled, and go lower. Don't forget Hecla is a bell weather stock. The powers that be will slam the metals so low it will make the average persons head pop!

August 11, 2010 | Unregistered CommenterJerrold Minyard

So I take it thus far from the comments, no one is selling there PM stocks in anticipation of a crash?

August 11, 2010 | Unregistered Commenterobiwan

It must be obvious that very few really know what is going on, except the Insiders who have the money and make the markets along with the Federal Reserve and the CFR. If you have the time, read the book "None Dare Call It Conspiracy", by Gary Allen.

It is like Howard Ruff recently wrote, while we are waiting for inflation as a result of all the money that the Obama Administration is printing, the Banks who received the money are holding it and are afraid to loan it out. The borrowers also are afraid to borrow. So, it is a stalemate.
When all this money hits the streets, watch out! Inflation will soar.

August 11, 2010 | Unregistered CommenterJohn Ell


We are looking to re-position ourselves via SLW and a bunch of options trades and to raise the cash we have sold big chuncks of Hl, PAAS, EXK, AUY, as per our posts.

If there is another crash then PM stocks will be hit, how bad the crash, how much damage would there be to PM stocks, the million dollar question!

August 12, 2010 | Unregistered CommenterSilver Prices

PM(precious metals)stocks, always hold on to some. You never know what will happen in this world. The metals will drop with the market. just as I have said in a previous article.

August 12, 2010 | Unregistered CommenterJerrold Minyard

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