August 06, 2015 at 03:16AM
- Silver Wheaton has lost a lot of value in the past one month, as the probability of an interest rate hike by the Federal Reserve has increased.
- Since silver is a non-interest paying commodity, it will lose value once the Fed hikes rates, as this will make Treasuries more attractive.
- Silver Wheaton’s margin and revenue performance is directly linked to silver prices, and a drop in the price of the metal will create more headwinds for the company.
- The company’s cash position is already weak, and the possible imposition of retrospective tax and penalties by the CRA to the tune of $207 million will weaken its fundamentals further.
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