It will be instructive to look at some silver companies in light of silver prices continually rising to surpass 31-year levels, including Silver Wheaton (NYSE:SLW), Pan American Silver (Nasdaq:PAAS) and MAG Silver (AMEX:MVG).
They're interesting because they represent three different parts of the industry.
Silver Wheaton is of course is a streaming company buying up assets of companies that need capital at low prices, with built-in prices other than small adjustments for inflation.
Pan American and MAG Silver are both miners, but MAG is still in the exploratory stage (although holding some of the highest grade ore in the sector). Pan American is a fully operational silver miner producing significant and measurable results.
Silver Wheaton simply stands on its own. It have very low operational costs because it has nothing to do with funding miners, just takes in money from the agreements in place. It's not a miner, and as silver prices go so goes Silver Wheaton, which bodes well for investors.
As far as Pan American and MAG Silver, it may depend on the way you invest. As long term MAG does have some serious potential because of the high grade ore mentioned above. Pan American has better short- and mid-term potential because the results are tangible.
Silver investors will win in all the cases above, but it's more the time horizon investors hold that will make the biggest difference in making a decision. Everyone should probably own Silver Wheaton, and Pan American and MAG Silver are the type that could move up at times much quicker, but also perform in a much more volatile manner, as all silver companies will do because of the nature of silver as an investment itself.
Pan American Silver closed Friday at $42.65, gaining $3.31, or 8.41 percent. MAG Silver closed at $14.48, rising $0.75, or 5.46 percent. Silver Wheaton climbed $46.91, up $1.40, or 3.08 percent.
Monday, April 11, 2011
Silver Wheaton (SLW) (PAAS) or (MVG) Best Silver Investment?
Labels:
MAG Silver,
Pan American Silver,
Silver Wheaton
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