Sell Silver Wheaton

17-Jun-2011 There's a big difference between holding physical gold and silver as opposed to an investment in stocks and shares that are involved in those precious metals. Believe me - If I could only invest in two things in 2011 it would still be physical gold and silver. I plan to sit on those babies for a very long time. I buy them, tuck them safely away - and sleep very soundly at night.

Investing in stocks and shares however, whether they be mining stocks or otherwise, is a different thin. It is an investment in the management of that company and everything that comes with running a large company - far more than the underlying assets themselves. It is also far more exposed to investor sentiment.

Silver has taken a massive smack since the Seals took out Osama Bin Laden. In fact the casual bystander could be forgiven for thinking Bin Laden was running the silver markets single handed judging by the speed it fell on his demise. Coincidental I am sure.

Many companies associated with silver have also taken a hit as the silver price has fallen including my favourite, Silver Wheaton (SLW)

Normally, if the fundamentals stack up I would sit it out, particularly as I am sitting on such huge gains in such a short period of time but
Sllver Wheaton was always a more risky gamble due to the nature of the companies activities.

I was quite late coming to the party, July last year to be exact, but the timing was perfect. Profits rose nicely throughout 2010 and early 2011 and things were looking very rosy. Then the shit hit the fan and the silver price took a massive dive. We have had a bit of a come back and there well be more I am sure but I am scared by both the volatility and the dealer sentiment around this stock. Too mant traders are currently looking for the exit. Silver Wheaton was only ever a strong bet in a rising silver market. Of course those days will come back soon and if any of you decide to sit it out I would not have a problem with that. But for me I am happy to take my profits in the current financial year. There is no rush and with the price bouncing around like balls at Wimbledon I will sell on any daily or weekly peaks in order to get the best price.

I bought at $18.54 and 11 months later it stands at around $31 - a very impressive 68% gain even with the recent sell off. Like I say, this decision no way affects my view on silver as an investment. I just feel that I should book my 68% gain and move away whilst the markets are so volatile and so many traders are looking for an exit.

Lets hope our other stocks are as successful as this one. Remember, Silver Wheaton was a classic case of buying AFTER the price had fallen, a technique I use so often but one which new members find so hard to do. No one likes to buy a stock that has fallen for the last few months.

Many of my favourite stocks for 2011 are demonstrating a similar pattern including Stans Energy (be aware the ticker has changed to HRE) and also Transatlantic (TAT).

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