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Why Precious Metals–Based Funds Have Fallen Sharply Gold reaches another low
The precious metals market has been deeply hurt in 2015, especially in the third quarter. Gold recently broke the July low of $1,073, reaching $1,062.40 per ounce—its lowest level since 2 010. Gold is moving closer to breaking the $1,000-per-ounce mark. The SPDR Gold Shares ETF (GLD) fell to $102.40 on November 25. GLD has fallen 9.8% in the current year and has recorded $1.0 billion in net outflows in the last five months.
Similarly, silver prices have fallen 10.3% on a YTD (year-to-date) basis, and the iShares Silver Trust (SLV) has fallen 10.2% YTD. The US dollar has risen almost 3% on a trailing-30-day basis. As precious metals and precious metals–based ETFs are priced in dollars, a rise in the dollar adversely affects them, especially in the long run.
Mining equities
Mining companies that have been targeted by the extended losses in the precious metals include Agnico Eagle Mines (AEM), Silver Wheaton Corp. (SLW), and Primero Mining Corp. (PPP). These three companies have recorded trailing-one-month losses of 4.5%, 11.1%, and 15.1%, respectively. Together, these companies make up 10.4% of the Market Vectors Gold Miners ETF (GDX). Among these three stocks, Primero Mining Corp. is the most volatile in current market conditions. It has an implied volatility of 72.8, as compared to Silver Wheaton Corp.’s implied volatility of 48.2.
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Silver Wheaton
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 12.6 billions as of today (US$ 9.2 billions, € 8.4 billions). Its stock quote reached its lowest recent point on March 09, 2007 at CA$ 10.01, and its highest recent level on May 15, 2017 at CA$ 28.53. Silver Wheaton has 441 520 000 shares outstanding. |