Shares of Silver Wheaton Corp. (SLW) have sharply decreased during December: The stock fell by 5.8% since the beginning of the month (up-to-date). The weak silver market especially after last week’s FOMC decision to taper QE3 by $10 billion is also dragging down Silver Wheaton’s stock. Gold and silver ETFs such as iShares Silver Trust (SLV), SPDR Gold Trust (GLD) have also suffered from the weakness of precious metals and sharply declined during December. Will Silver Wheaton continue to plunge? What should we expect from the company’s performance in the fourth quarter?
The company is likely to release its fourth-quarter earnings report during the middle of January 2014. Until then, let’s see how the company may have done during the quarter. Based on the company’s expectations, production of gold and silver in the first three quarters of 2013, and the changes in the prices of precious metals, I guess the company’s revenues will sharply decline in the fourth-quarter compared to the parallel quarter in 2012. The main reason for the drop in revenues is sharp fall in precious metal prices. The fall in prices will offset the expected rise in both gold and silver production.
For the rest of the analysis see at Seeking Alpha
For further reading:
- Gold and Silver Outlook for December
- Will Gold Companies Recover from Their Plunge?
- Gold and Silver Weekly Outlook for December 16-20
- Weekly Outlook of Financial Markets for December 16-20
- Is the Golden Era of Gold Over?
- Will Gold Recover from its Recent Fall?
- Will The Gold Market Continue to Heat Up?
Disclaimer: The author holds no positions in stocks mentioned and does not plan to initiate positions within 120 hours of the posting of this article. This article is to be used for educational, research and informational purposes only and does not constitute investment advice. There are no guarantees, expressed or implied, of future positive returns in regards to the subject matter contained herein. Understand the risks inherent in investing before making the decision to invest or consult an investment professional for more information. Reasonable due diligence has been performed in regards to the information in this article. However, the author expressly disclaims any liability for accidental omissions of information or errors in fact.