Market Curiosity: Exploring Markets And Systems

March 23, 2011

SLW update

Filed under: Just Watching — Tags: , , — Jeff Fitzmyers @ 8:34 pm

Jim Willie: Confirmation has come that mining firms are bypassing the COMEX. They choose to sell Gold & Silver mining output to investment funds like the Sprott Fund. The COMEX will find itself in increasing isolation. Their artificially low price paid for metal has sparked a wide reaction. Unknown is the amount paid in premiums over spot prices by the funds in order to facilitate the purchases. The premium prices indicate the true price, not the nonsensical price discovery at the COMEX under suppression, cash settlement, and other crooked devices.

If true, I would expect more entities to try to take delivery from the COMEX as the COMEX price is significantly lower than mining firms, accelerating the demise of the COMEX.

Silver Wheaton Reports 9% Increase In Attributable Reserves, Marking Sixth Consecutive Annual Increase

Long June 46 (2.22) and 65 (0.23) calls 4 days ago. The 65 calls are a bet on a big price run up and will have to be closed if price starts to stall out. I think they were expensive and expire rather soon considering how out of the money they are. But, if silver really starts to run, it’s much better to have exposure to a large number of shares rather than just exposure. The 46 calls were rather out of the money considering what I normally like to do (at the money, or one strike out of the money), but they area already rather profitable.

I still entertain the notion that SLW will be the biggest momo stock ever.

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