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One of the Ultimate Silver Trades You Can Make Right Now

By Brian Hunt, Editor in Chief, Stansberry Research
Monday, August 22, 2011

Now that stocks have fallen 16.5% in just a month, it's hard to find a stock still in a major uptrend.
 
Semiconductor stocks, airline stocks, bank stocks, steel stocks, emerging market stocks, and oil stocks have all suffered huge declines... and many now sit at 12-month lows.
 
This broad market destruction makes the price action in Silver Wheaton (SLW) all the more impressive... and another reason to consider owning shares.
 
Regular Stansberry & Associates readers know Silver Wheaton isn't your typical mining stock. It doesn't operate mines or explore for mineral deposits. It finances lots of early-stage mining projects and collects royalties when those projects start producing silver. This makes the company a diversified, leveraged way to profit from rising silver prices... and one of the world's ultimate gold and silver stocks.
 
In 2009 and 2010, Silver Wheaton shares behaved "as advertised." Silver advanced in price. And investors moved back into mining stocks after the 2008 crisis. Silver Wheaton gained more than 500%. After running so far so fast, it took a needed "breather" and corrected.
 
But despite this selling pressure, SLW still exhibits a bullish series of "higher highs and higher lows." And as you can see from the chart below, its shares are basically unchanged in the past month. When a stock can hold steady or even advance in a huge market decline, it's impressive, bullish action. 
 
 
My colleague Dr. David Eifrig (editor of S&A's Retirement Trader advisory) is one of the smartest traders I've ever met. In the August 20 edition of DailyWealth, he showed us how owning silver amounts to a great "chaos hedge" position... one that can serve as a portfolio stabilizer. Silver and silver stocks, like Silver Wheaton, can skyrocket in price if investors continue to bid up the price of gold and silver.
 
If you're looking for such a "hedge" position, or simply want to trade an asset that has held up wonderfully during the market panic, consider owning silver or shares of Silver Wheaton.
 
As you can see, one of the worst selling panics we've seen in the past 10 years couldn't budge the stock. And if chaos continues to reign in the market, silver prices will remain robust... and SLW shares could easily double in the next 12 months.
 
Regards,
 
Brian Hunt




Further Reading:

"I think of owning gold and silver the way I would home insurance," David Eifrig tells DailyWealth readers – the best insurance you can buy in advance of a crisis. "It's something I'm glad to have, but hope to never have to use."
 
Mining expert Matt Badiali recommended we get into Silver Wheaton back in June. If you listened to him then, you're already up on your investment. And there's still plenty of room to grow. See his recommendation here: We're Back Into Silver Stocks.

In The Daily Crux
Market Notes
Silver breaks out to a three-month high.
 
Over the last six months, gold has set a new record high more than once every four trading days.
 
Homebuilders are still broken... KB Home and PulteGroup fall to their lowest levels in more than a decade.
 
Gold, silver, and gold miners are among the few "survivors" trading above their 50-day moving averages.
Market Watch
Symbol Price
Change
52-Wk
S&P 500 1123.53 -1.5% +4.5%
Oil (USO) 32.12 +1.3% -3.4%
Gold (GLD) 179.95 +1.3% +49.5%
Silver (SLV) 41.68 +5.1% +132.6%
U.S. Dollar 74.16 +0.6% -10.1%
Euro 1.44 +0.5% +12.3%
Volatility (^VIX) 43.05 +0.9% +62.8%
Gold Stocks (^HUI) 581.29 +2.3% +23.4%
10-Year Yield 2.07 -0.5% -19.8%

World ETFs
Symbol Price
Change
52-Wk
S. Africa (EZA) 62.56 -0.2% +9.7%
Canada (EWC) 27.80 -1.5% +7.5%
USA (SPY) 112.64 -1.6% +6.5%
Singapore (EWS) 12.31 -0.6% +6.2%
Taiwan (EWT) 12.85 -1.8% +4.6%
S. Korea (EWY) 50.86 -3.5% +3.6%
Japan (EWJ) 9.43 -1.0% -0.2%
Israel (ISL) 14.20 -1.7% -3.1%
Lat.America (ILF) 43.40 -0.8% -4.1%
Russia (TRF) 17.03 -1.8% -7.8%
China (FXI) 35.88 -0.9% -9.4%
India (IFN) 25.70 -1.2% -14.5%

Sector ETFs
Symbol Price
Change
52-Wk
Oil Service (OIH) 120.29 -3.8% +20.3%
Internet (HHH) 65.43 -2.2% +15.6%
Big Tech (QQQQ) 50.03 -1.8% +12.4%
Consumer Svcs (IYC) 62.58 -1.3% +12.4%
Retail (PMR) 17.90 -0.5% +12.3%
Utilities (XLU) 32.39 -0.6% +11.2%
Big Pharma (PPH) 63.96 +0.1% +9.9%
Real Estate (IYR) 52.99 -2.0% +9.1%
Health Care (IYH) 63.74 -0.5% +8.8%
Basic Mat (IYM) 63.38 -1.8% +7.9%
Telecom (IYZ) 20.85 -1.5% +6.3%
Media (PBS) 11.82 -2.1% +4.8%
Semis (PSI) 12.45 -2.3% +3.2%
Industrials (IYJ) 54.60 -1.6% +2.8%
Water (PHO) 15.30 -1.7% +1.7%
Transportation (IYT) 76.26 -1.7% +1.0%
Biotech (PBE) 18.00 -0.3% -0.2%
Insurance (PIC) 13.79 +0.0% -2.4%
Software (PSJ) 20.02 -1.2% -2.7%
Defense (PPA) 15.79 -0.9% -2.8%
Construction (PKB) 10.01 -3.2% -6.3%
Financials (IYF) 45.28 -2.0% -8.3%
Nanotech (PXN) 6.70 -2.6% -18.2%
Alt. Energy (PBW) 6.45 -3.0% -25.7%

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