Tuesday, September 28, 2010

Silver Wheaton (NYSE:SLW) Downgraded by UBS (NYSE:UBS)

Silver Wheaton Corp. (NYSE:SLW) was downgraded by UBS (NYSE:UBS) from "Buy" to "Neutral," as the silver company stands near its 52-week high, having gained well over 100 percent over that time.

One thing that concerns some investors is the approximate PE of 50 the company has, causing some to look for alternatives in the industry for those with much lower ratios.

Yet it seems silver prices have broken through and is poised to run up with gold, and that is good news for Silver Wheaton and investors.

That doesn't mean there isn't a possibility of a correction, that happens with any sector and company that has enjoyed consistent success in share price.

With silver considered a place of safety as a precious metal, but also in demand as an industrial metal, there is still a long way for silver prices to run, along with Silver Wheaton before things pull back significantly.

In the near term there could be some leveling off, but I don't think over the long term Silver Wheaton can be held back from continuing to grow in share price and market value.

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