Silver Wheaton Corp

At 2:50 PM EDT on July 22, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) gained ~1%, ~2.0% ,and ~0.77%, respectively.

Royalty and streaming companies Royalty and streaming companies’ business model differs greatly from that of other precious metal miners (RING), mainly because royalty and streaming companies do not own mines. These companies make upfront payments to gain a right to a fixed percentage of future silver or gold mine production. Additional payments are then made […]

India and China, the two largest consumers of gold, make up about 50% of gold’s global demand. Gold is treated more as a commodity in these two countries.

These economic concerns and monetary stimulus expectations have decreased the probability of an interest rate hike by the US Federal Reserve, and the chances of an interest rate hike in July dropped to zero.

Copper is trading lower on Thursday. At 6:36 AM EST, the COMEX copper futures contract for July delivery was trading at $2.06—a decline of 1.1%.

Investments in the precious metals sector—including mining—substantially depend on the rate hike conundrum.

At 8:45 AM Eastern time, gold futures contracts for June delivery were trading at $1,298.75 per ounce, a gain of 0.23%. Silver was trading at $17.59 per ounce, a loss of 0.37%.

At 2:40 PM EST on August 8, the COMEX gold futures contract for December delivery was trading at $1,341.35 per ounce—a drop of ~0.23%.

At 6:35 AM EST on October 7, the COMEX copper futures contract for December delivery was trading at $2.15 per pound—a fall of ~0.12%.

The market is anticipating the speech by the Federal Reserve chair, Janet Yellen, at the annual central bankers meeting to be held in Jackson Hole, Wyoming, on August 26.

China’s better-than-expected growth in real estate investments in April supported copper prices on Monday.

The business model of royalty/streaming companies is quite different from that of other precious metal miners.

The iShares Silver Trust and the iShares Gold Trust have gained 2.9% and 0.91%, respectively, in the past five days, likely due to the precious metal rebound.

The market consensus rating for Coeur Mining stock is a “buy” from 60.0% of analysts. About 40.0% are recommending a “hold.”

First Majestic, New Gold, Agnico, and Silver Wheaton now have RSI scores of 60.5, 56.2, 57.6, 59.6, respectively.

Crude oil prices regained strength last week amid a decline in crude oil inventory levels and expectations of an extension of the supply cut agreement.

RGLD is being covered by 13 Wall Street analysts right now, of which 54% recommend a “buy” for the stock, while 46% recommend a “hold.”

Copper prices stabilized on Monday, July 4, amid expectations of stimulus from central banks.

The market consensus rating for Coeur Mining stock is a “buy” from 67.0% of analysts. About 33.0% are recommending a “hold.”

Gold prices for April futures contracts continued trading in a downward trend. Prices broke the key support level on March 10, 2015.

Mining companies like First Majestic Silver (AG), Silver Wheaton (SLW), Pan American Silver (PASS), Coeur Mining (CDE), and Hecla Mining (HL) are primarily into silver exploration.

At 6:30 AM EST on April 27, the West Texas Intermediate crude oil futures contract for June 2017 delivery was trading at $49.16 per barrel—a fall of ~0.93%.

Royalty and streaming mining companies (RING) (SIL) have business models that are considered quite conservative because they don’t own mines.

The business models of royalty and streaming companies is quite different from those of other precious metals miners. Royalty companies don’t own mines.

The market consensus rating for Coeur Mining stock is split between “buy” and “hold.” Of the nine analysts covering the company, 56% have “buy” recommendations.

At 7:30 AM EST on April 25, the West Texas Intermediate crude oil futures contract for June 2017 delivery was trading at $49.26 per barrel—a gain of ~0.04%.

At 6:40 AM EST on July 5, the COMEX Copper futures contract for September delivery was trading at $2.2 per pound—a drop of 0.81%.

Royalty and streaming companies are quite different than other precious metal miners in terms of business model.

After regaining strength on Tuesday and breaking the six-day losing streak, crude oil prices opened lower on April 26 and traded weaker.

Prices settled just above the important support level on March 9, 2016. The April futures for silver might test the next key support of $15.50 per ounce.

The falling wedge pattern could be seen in the May silver futures contracts. Silver prices were trading at the lower part of the wedge pattern on March 10, 2015.

The Direxion Daily Gold Miners (NUGT) and the ProShares Ultra Silver (AGQ), both leveraged mining funds, both have recovered and jumped 19.4% and 24.9%, respectively, on a five-day trailing basis.

Even though its cost-cutting efforts were impressive in 2015 and 2016, Coeur is still producing at higher costs than many of its peers.

The US dollar and precious metals are usually inversely related to each other.

Silver was the second best-performing precious metal in September, advancing by 11.40% on a 30-day trailing basis. But October has seen negative returns.

Silver has successively risen in the current year and is now the best-performing precious metal.

At 6:30 AM EST on July 26, the COMEX copper futures contract for September delivery was trading at $2.21 per pound—a drop of ~0.45%.

Copper is trading positive on Friday morning. At 7:21 AM EST, the COMEX copper futures contract for July expiry was trading at $2.08 per pound.

With the rally in precious metals, precious metal mining stocks benefited the most. Among the miners, the South African miners outperformed.

The current turmoil in the stock markets has hurt most market participants. Investors are thus opting for safer investments like gold and silver.

Gold and the US dollar have witnessed an almost inverse relationship over the past few years. The other precious metals have a similar inverse relationship to the US dollar.

In January, gold holdings surged because of the Swiss National Bank’s decision to remove the euro cap, as well as other developments.

After gaining for two consecutive trading days, gold prices inched higher on Wednesday, September 21. This gain occurred against the backdrop of the Federal Reserve meeting and the marginally lower dollar.

In precious metals, gold and silver look stable this morning. At 6:19 AM EST, gold for June delivery was trading at $1,234.05 per ounce—a gain of 0.33%.

On September 15, the COMEX gold futures contract for December delivery fell 0.09% to $1,320.25 per ounce.

All four precious metals except palladium saw a down day on Friday, April 20. That led to a fall in most miners’ prices.

The US added 138,000 jobs in May 2017, after adding 174,000 jobs in April (revised downward from 211,000 previously).

There are 14 known gold ETF holdings. These include the SPDR Gold Trust (GLD), the largest physical-gold-backed ETF.

This suspension is positive for Barrick. The capital that had been allocated for the development of this project will be used to pay down Barrick’s debt and improve its overall financial condition.

Outflows from ETFs led to an ~28% fall in gold prices in 2013. As a result, it’s important for investors to monitor changes in ETF holdings.

The rally had pushed silver ETFs such as the iShares Silver Trust ETF (SLV), the ProShares Ultra Silver (AGQ), and the Silver Trust ETF (SIVR) higher.

Markets were full of geopolitical tensions in April, boosting precious metals and miners’ stock prices.

Another crucial factor behind precious metals’ rise was the US dollar index, which fell 0.42% on May 10.

Initially, the Fed’s decision to raise the interest rate didn’t affect miners and metals much.

On March 6, all four precious metals had an up day, which also led to gains for miners.

There has been much hype about the expected movement of inflation and how the Federal Reserve would react to this.

Miners had a good start to 2018. They saw higher prices due to precious metals’ revival. As precious metals fell, so did the mining stocks.

Miners had a good start in 2018. However, they later faced a carnage, mainly due to the rising strength of the US dollar.

At 4:00 AM EST on January 26, the West Texas Intermediate crude oil futures for March 2018 delivery were trading at $65.44 per barrel—a drop of 0.11%.

As we know, precious metals are closely tied to movements in US interest rates. Bonds and equities are both yield-bearing assets, so a rise in yields often causes a slump in demand for assets such as gold and silver.

At 4:00 AM EST on January 24, the West Texas Intermediate crude oil futures for March 2018 delivery were trading at $64.50 per barrel—a gain of 0.05%.

At 5:55 AM EST on January 23, the West Texas Intermediate crude oil futures for March 2018 delivery were trading at $63.88 per barrel—a gain of 0.49%.

On January 12, 2018, precious metals were once again on a rising streak, which also led to increasing prices for mining shares.

The target prices of the four miners we’re covering in this part are higher than their current trading prices, which could lead to an optimistic outlook on their prices.

SLW, GOLD, ABX, and BVN have call implied volatilities of 30.8%, 23.9%, 24.5%, and 30.8%, respectively.

Though the precious metal prices have been on an upswing over the past few weeks, the streak could end due to the increased probability of Fed rate hikes in 2018.

A gold-silver spread of 77.3 suggests that it requires almost 78 ounces of silver to buy a single ounce of gold.

Due to its solid performance YTD (year-to-date) and bright outlook, Royal Gold (RGLD) is attracting a lot of interest from the analyst community.

Coeur Mining and Hecla Mining have seen a loss in their prices on a year-to-date basis, falling 17.9% and 24.0%, respectively.

Gold and silver are strong early on December 20. The lower global risk appetite and weak US dollar are supporting gold prices in the early hours.

Gold Fields, Wheaton Precious Metals, Pan American Silver, and IamGold have RSI scores of 36.7, 55.2, 41.9, and 44.4, respectively.

Gold is the most dominant among the four precious metals. It’s important that investors analyze how miners are moving compared to precious metals.

Precious metals have been closely associated with the movement of the US dollar over the last few months.

Precious metal slump All four precious metals saw a down day on Monday, November 20. Gold fell 1.6% to $1,275.30 per ounce, after touching a one-month high on Friday, November 17. The fall in precious metals was most likely due to the rise in the US dollar. The US Dollar Index rose 0.45% on Monday. Gold, silver, platinum, […]

When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.

During the past 30 trading days, Sibanye Gold and Silver Wheaton have a 30-day trailing gain of 10.5% and 1.3%, respectively.

Precious metal miners saw mixed performance on Tuesday, November 14. Gold and silver saw an up-day while platinum and palladium were low.

When investors want to park their money in miners, it’s crucial that they analyze the correlations of mining stocks with gold.

Precious metal miners saw a mixed performance on Thursday, November 2, 2017. In this series, we’ll look at some technical details of mining stocks.

Mining stocks’ reaction On Tuesday, October 31, precious metal mining stocks fell, following precious metals. In this part of our series, we’ll look at the moving averages and returns of four key mining stocks: Silver Wheaton (SLW), Hecla Mining (HL), Alacer Gold (ASR), and IAMGOLD (IAG). Hecla Mining and Alacer Gold have fallen 9.9% and 10.3%, respectively, YTD […]

AG, CDE, and HL have shown YTD losses of 12%,16%, and 9.2%, respectively. The silver-based Global X Silver Miners Fund (SIL) has a YTD loss of 0.31%.

Franco-Nevada and Silver Wheaton have seen an upward trend in their correlations with gold.

As of October 24, 2017, Silver Wheaton (SLW), Yamana Gold (AUY), Barrick Gold (ABX), and AngloGold Ashanti (AU) had implied volatility readings of 30.8%, 48.4%, 29.1%, and 40.9%, respectively.

The gold-platinum spread was ~1.38 on October 23. The RSI (relative strength index) level for the gold-platinum spread is now at 93.9.

As of October 19, Sibanye Gold, Agnico Eagle Mines, Silver Wheaton, and Randgold Resources had implied volatility readings of 63%, 33.6%, 30.8%, and 25%.

Despite the overall downturn among precious metals on Tuesday, October 17, precious metal mining stocks witnessed a mixed reaction that day.

Ongoing worries in North Korea and political chaos in Washington have been crucial in boosting the prices of precious metals.

Gold reached its two-week high price of $1,294.5 an ounce on Tuesday, October 10, and ended the day at $1292.1 per ounce.

Mining funds that have a strong relationship to precious metals are the Global X Silver Miners (SIL) and the VanEck Vectors Gold Miners (GDX).

All the four precious metals saw an up day on Monday, October 9, 2017.

Credit Suisse (CS) downgraded Franco-Nevada (FNV) from “outperform”’ to “neutral” on September 25, 2017.

On October 2, 2017, Silver Wheaton, Randgold Resources, AngloGold Ashanti, and IamGold had implied volatility readings of 30.8%, 25%, 40.9%, and 44.3%, respectively.

September 29 was another down day for precious metal mining stocks, whose reactions often mirror precious metal prices themselves.

A correlation analysis is crucial because it gives investors clues about the possible movement of mining stocks in relation to precious metals.

Most mining shares witnessed an up day on Monday, September 25, 2017, as precious metals increased over the ongoing global tensions.

On September 22, 2017, First Majestic Silver, Goldcorp, Newmont Mining, and Silver Wheaton had volatilities of 49.1%, 26.7%, 23.5%, and 30.8%, respectively.

Among the four major streaming companies we’re looking at in this part, Franco-Nevada (FNV) has the highest forward EV-to-EBITDA multiple of 28.8x, a 35.0% premium to its peers.

In this part of our series, we’ll look at the relationships that some miners have with the precious metals they mine.

The miners that experienced the greatest losses during the past five trading days were IamGold (IAG), Silver Wheaton (SLW), Goldcorp (GG), and Primero Mining (PPP). These miners fell 7.5%, 6.0%, 6.2%, and 57.5%, respectively.

The price movement in precious metals is often closely traced by mining stocks. Before investors opt for mining stocks, they should analyze a few of the crucial technical details.