Have Investors Been Overlooking Wheaton Precious Metals?
Investors can get gold and silver exposure in a number of different ways. You can obviously just buy the metals directly, but that often comes with high transaction costs and the need for storage. You can buy a mining company like Barrick Gold (NYSE: ABX) or Goldcorp (NYSE: GG), but operating mines is a dangerous and costly affair. Streaming is a slightly different way to get precious metals into your portfolio that you may have been overlooking -- which is where Wheaton Precious Metals (NYSE: WPM) comes in.
Streaming companies like Wheaton give cash up front to miners in exchange for the right to buy gold and silver in the future at reduced rates. The deals generally lock in low costs for Wheaton. On average, Wheaton's deals with producers have an average purchase price around $400 an ounce for gold and $4 an ounce for silver. That's well below current prices for these metals.
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Source: Fool.com
