Silver Wheaton has been an incredibly interesting stock to follow as of late. That's because it has seen tremendous gains. In fact, we've seen the price of the stock increase by more than 150% since the beginning of the year. At the end of the day, I believe that we've only seen the beginning of the gains. Today, we'll talk about what causes movement in Silver Wheaton, why we've seen such positive movement throughout the beginning of the year, what we can expect to see moving forward, and how binary options traders can take advantage of the trends.
What Causes Movement In The Value Of Silver Wheaton
First and foremost, if you plan on trading Silver Wheaton binary options, it's important that you understand what causes movement in the price of the stock. Silver Wheaton, as its name would suggest, is a company that's heavily focused on silver. The company mines the commodity, prepares it, and eventually sells it.
Because the company's flagship product is silver, it generates more profit when the price of silver is up and less profit when the price of the commodity is down. Of course, larger profit means higher stock prices and smaller profit means lower stock prices. So, when trading the stock, it's important to watch the price of silver.
Why We've Seen Strong Gains This Year
Silver Wheaton has climbed in a big way this year. As mentioned above, the stock has seen gains of more than 150%. the gains we're seeing in the value of the stock are the result of rising silver prices. You see, silver, is considered to be a safe haven demand, and right now, investors are flocking to safe havens.
The truth of the matter is that the global economy is in very bad shape. When the economy will start to recover is uncertain. As a result, the stock market is an incredibly risky place to be at the moment. In fact, low interest rates are inflating stock values, a sign that we are headed for a crash! With all of this going on, demand for precious metals is on the rise. Ultimately, this is leading to big gains in the value of silver, and as a result, Silver Wheaton.
What We Can Expect To See Moving Forward
Moving forward, I have an incredibly bullish opinion of what we can expect to see from Silver Wheaton. At the end of the day, the company offers the right product at the right time. Sadly, the global economy doesn't look like it's improving now, nor will the big problems the world is facing at the moment disappear on their own. As a result, I'm expecting to see a continuation of strong safe haven demand, leading to more gains in the value of the precious metal.
How Binary Options Traders Can Take Advantage Of The Trends
As binary options traders, it's our job to find trends surrounding financial assets and make trades based on those trends to turn a profit. In this particular case, our job is relatively simple. Silver Wheaton is likely headed up. As a result, binary options traders should be watching the stock closely. At any sign of a bullish run, it will be time to buy call options in order to follow the trends up to the profits.
What Do You Think?
Where do you think Silver Wheaton is headed moving forward and why? Join the discussion in the comments below!
[Image Courtesy of Pixabay]