NEW YORK (TheStreet) -- Silver Wheaton Corp. (SLW) stock is rising 6.37% to $13.02 in afternoon trading on Thursday after gold prices gained because of a weak dollar and volatility in Chinese markets.
Gold for February delivery is increasing 1.58% to $1,109.20 per ounce on the COMEX this afternoon.
Chinese markets fell 7% before trading was halted for the second time this week after the yuan depreciated and concerns over Chinese economic growth increased, Reuters reports.
"Gold is clearly re-establishing its role as a safe-haven," HSBC analyst James Steel told Reuters. "For as long as global stock markets - in particular China's - appear wobbly, gold is likely to attract a good bid."
Additionally, Silver Wheaton was highlighted as one of the preferred North American gold and silver equities by RBC Capital Markets this morning.
The firm maintained its "outperform" rating on the Canadian precious metals mining company but lowered its price target to $20 from $23 because of the volatility in gold prices.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate SILVER WHEATON CORP as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.