3 Terrible Reasons to Sell Wheaton Precious Metals Corp.

3 Terrible Reasons to Sell Wheaton Precious Metals Corp.

Wheaton Precious Metals Corp. (NYSE: WPM) has a unique business model, providing investors exposure to silver and gold without the need to own a miner. You need to make sure you understand the implications of how Wheaton runs its precious-metals streaming business before you sell the stock for any one of these three terrible reasons.

First things first, streaming companies like Wheaton, and competitors Royal Gold (NASDAQ: RGLD) and Franco-Nevada (NYSE: FNV), give cash up front to miners in exchange for the right to buy silver and gold in the future at reduced rates. These deals provide miners an alternate source of capital when other options, like banks and capital markets, are undesirable.

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Source: Fool.com