One of the sound decisions made by Ian Telfer at Wheaton River before it was merged with Goldcorp was to set up a silver royalty company. This is the purest equity investment in silver production.

As you know, I believe silver is going to hit a Bull cycle high of maybe $18. Most of Wall Street also has higher forecasts, but most are in the US$12 to $13.50 range.

The best precious metals play in the second half of the commodity Bull is going to be silver, I believe, and Silver Wheaton is my favorite. My target is well above any Wall Street analyst's, to my knowledge.

As per their website: "Silver Wheaton is the only mining company with 100% of its revenue from the sale of silver. Having silver purchase contracts with three separate mines, the Company expects to sell approximately 15 million ounces of silver in 2006, growing to 20 million ounces by 2009. The Company purchases all of the silver production from the Goldcorp mines in Mexico and the Zinkgruvan mine in Sweden, together with a portion of the silver production from Glencore's Yauliyacu mine in Peru. Silver Wheaton's unique and simple business model is designed to create long-term shareholder value, providing for strong upside potential with downside protection. Silver Wheaton is unhedged and well positioned for further growth."

One concern to traders ought to be whether or not the Goldcorp-Glamis deal is halted. The Glamis Peñasquito Project would have been a valuable addition to Silver Wheaton.

As I get some Wall Street research on Silver Wheaton, I will upload it here.

One final point is that in his Affidavits, Robt McEwen will be giving evidence tomorrow about the "unfairness" in Ian Telfer's dealings on behalf of Silver Wheaton. The Affidavit on the McEwen website goes into the details. I'll leave it that, yes, I agree that SLW shareholders have been advantaged. :-)

Silver Wheaton Corp [GICS 15]
(SLW: Yahoo Finance file)
(SLW: StockChart chart)
(SLW: Investertech chart)
(SLW: ADVFN Financial Data)
(SLW.TO: Yahoo Finance file)
(SLW.TO: StockChart chart)
(SLW.TO: Investertech chart)
(SLW.TO: ADVFN Financial Data)
Silver Wheaton Corp website
Silver Wheaton Corp - DGF2006

Silver spot chart (Interactive link)

There are a couple other silver miners I like, which I'll try to get to in the blog today and on the weekend. Tomorrow, I'll be in the courtroom with McEwen vs Telfer.

When I made the wisecrack that it's too bad the drinks would not be on the house, I was referring to the champagne being uncorked the last time these two gentlemen got together.

Note: The precious metals commodity prices and the related share prices are moving up faster than I can possibly get the reports to you. (lol)

Do you think maybe I should suggest that gold and silver prices are headed DOWN, which would give me a chance to get the rest of these reports done when prices are low? (lol)

It seems the more I publish, the higher the price goes!