Investing in precious metals has never been easier. You can make a lifelong investment in precious metals like gold, silver, palladium, and platinum with just a few clicks.
However, many people have found investing with a streaming or royalty company to be more profitable. Still, with so many options to choose from and so many scam websites luring people in, you may be left wondering which companies are legitimate and which ones you should avoid.
IMPORTANT – before we get too far in this review, we’d like you to know we’ve vetted quite a few companies in this space.
We know that selecting a company to work with is a major financial decision and something not to take lightly. InvestingInGold.com has put in extensive research spanning many years in order to compile a list of the 5 highest recommended companies for this year.
We urge you to view the links to see where Wheaton Precious Metals stacks up against the competition.
Looking for an Investment Opportunity?
If you are looking for a precious metal streaming company to invest in, you may have heard of Wheaton Precious Metals. We have researched this company’s operations to determine whether it is a good idea to invest with them. Here is everything you need to know about Wheaton Precious Metals Corp.
Wheaton Precious Metals Review Summary
Company Name: Wheaton Precious Metals Corp.
Type of Business: Mining and silver streaming
Current Number of Ongoing Projects: 24, with a further eight in the development stage
Market Cap: More than $20 billion
Run By: Randy Vernon and Joseph Smallwood
Location: Vancouver, Canada
Founded In: 2004
Overall Rating: 4.5/5
What Is a Streaming Company
With the recent economic instability, an increasing number of people are turning to precious metals investments. This is because precious metals investments aren’t subject to inflation. They have intrinsic value and carry no credit risk.
The Difference Between Dealers and Streaming Companies
Unlike a precious metals dealer that primarily sells precious metals, streaming companies are also involved in the mining industry.
Wheaton Precious Metals Corp. is among the world’s most prominent precious metals streaming companies. To get a good understanding of what Wheaton Precious Metals is, it may be helpful first to understand what a streaming company is.
Streaming Companies Make a Deal with Mining Companies
Streaming companies provide finance for mines in return for future income. This means that a mining company and a streaming provider often come to an agreement. According to the terms of the contract, they can buy a percentage of the mine’s metals, or perhaps the entire output.
Wheaton Precious Metals covers a portion of the cost of these activities upfront and the remainder when the commodities are received.
Wheaton Precious Metals Current Operations
Presently, the company has streaming agreements in place with 17 mining companies for 24 active mines. It is also involved in eight precious metal mining projects still in the development stage.
Are Streaming Companies and Royalty Companies the Same Thing?
While a royalty company and a streaming company may seem the same, they are inherently different. Both royalty and streaming companies invest in mining companies in the hopes of receiving future payoffs. However, royalty companies receive their payouts in monetary form, while streaming companies receive their payouts in the form of physical metals.
After that, the streaming company sells gold and other precious metals that they have received from the mining companies for a profit.
Understanding Wheaton Precious Metals Corp
Wheaton Precious Metals International Ltd. is a precious metals streaming company in the United States. It has operations in mining firms and is situated in Vancouver, Canada. Wheaton’s purpose is to provide value to its partners and stakeholders by offering precious metals investors low-risk, varied exposure and growth prospects.
Acquiring New Income Streams
Wheaton’s business plan is built around acquiring new precious metal streams, boosting its yield, and extending mining operations while still adhering to the terms of their current contracts. Wheaton can provide you with these advantages while also reducing the risks that traditional mining firms experience by anticipating future operating expenses.
Market Cap of Over $20 Billion
Wheaton Precious Metals has risen in value over time and currently has a market capitalization of $ 20.099 billion. They presently have several streams of income and have an impressive market cap as seen on exchanges like the New York Stock Exchange and the Toronto Stock Exchange.
These streams of income are obtained by paying a one-time charge and then receiving additional payments once the metal is received. The business has grandiose plans to become the world’s largest ‘precious metals investment vehicle.’ Currently, this title goes to the Franco-Nevada Corporation.
Wheaton Precious Metals Pros and Cons
If you are wondering what the benefits and drawbacks of investing with Wheaton Precious Metals are, we have done a little digging.
- You do not have to worry about storing your precious metals when you invest with Wheaton
- The business offers excellent digital tools
- Wheaton Precious Metals is one of the largest of its kind in the precious metals sector
- It currently has contracts with 24 mining companies
- The company has a significant number of assets, a high operating cash flow, and is presently worth more than $20 billion
- It has proved to be a good business for precious metals investments
- Streaming companies often have predictable costs, which makes it an attractive investment option
- Wheaton Precious Metals receives a steady stream of income
- It has received mostly positive customer reviews
- Wheaton Corp’s revenue is based on the activities of affiliated mining companies
- Investing in a streaming organization like Wheaton Precious Metals does not offer the security of investments in precious metals directly
- Volatility in the precious metals sector may expose you to risks
- Price fluctuations and geopolitical aspects have an influence on the company’s success
Wheaton Precious Metals Financial Data
A great way to tell whether it is a wise decision to invest in a company is to look at its financial data. Fortunately, Wheaton Precious Metals shows promising investment returns with an impressive market cap.
The firm pays regular dividends. It also has a market capitalization of $20.099 billion and earnings per share (EPS) rate of $1.28, with a price-earnings (P/E) ratio of 34.97. Concerning liquidity, the daily average number of shares traded is 2,054,300, allowing most investors to move in and out of this business easily.
Its 52-week trading range is between $34.85 and $57.89, indicating that some volatility can be expected. It’s also worth noting that the organization buys metals at a fixed price. Thus any rise in metal prices results in an instant increase in revenue and earnings.
What Products Does Wheaton Precious Metals Receive from Mining Companies?
Wheaton Precious Metals Corp. receives a wide range of metals and other assets from its mining partners. These include metals such as gold, palladium, platinum, copper, and silver. Wheaton Corp. also invests in mines with zinc and cobalt deposits, among others.
The Value of Wheaton Corp. Stock Prices Over Time
In 1900, the price of an ounce of gold was $20.68, but it has grown in value and was worth $1,769.64 in 2021. This means that someone who invested in gold in 1900 would have received an 84-fold return on their investment.
ROI on Wheaton Corp. Investments
In comparison, investors saw a 13-fold return on their investments with Wheaton Precious Metals in just 16 years. On 1 July 2005, it had an initial public offering (IPO) stock price of $3.25, and on 20 July 2021, it had a market close stock price of $43.31 per share.
Trading and Buying Wheaton Precious Metals
The London Metal Exchange (LME) and the New York Mercantile Commodity Exchange (otherwise known as COMEX) are two stock markets that trade precious metals.
Metal producers can also buy and sell precious metals directly, with prices determined by the manufacturers or trade organizations. Rare or costly metals are not traded publicly and must be obtained via personal and exclusive arrangements with the metal manufacturer.
It’s vital to remember that the price of a streaming company’s stock isn’t determined by the actual worth of its precious metals but rather by how the stock is expected to perform.
What You Need to Know Wheaton Precious Metals Investments
Suppose you are hoping to buy shares in Wheaton Precious Metals. In that case, you may be curious to know how the organization performs on the market and whether it is better to invest in this company rather than other traded corporations.
Here are a few reasons why Wheaton Precious Metals is an attractive investment option.
1. Different Agreements
Wheaton collaborates with numerous active mines from around the world. Investing in a mining company is a riskier undertaking because you can lose your investment if the mine goes under. On the other hand, Wheaton is not significantly affected if one of their associates is having financial difficulties.
Different Expiration Dates
Another advantage of several agreements is that the contracts are all varied in their expiration dates. When a mining facility closes, typical mining companies’ contracts come to an end all at once. This could result in a substantial drop in an investor’s dividends.
However, when you invest in Wheaton Precious Metals, even if one mine needs to close down, you do not lose your money because the organization has a large number of affiliated resources.
2. Greater Earning Opportunities
Wheaton does not face the same constraints as mining businesses. When a mining firm opens a new facility, it faces significant initial costs. Many initiatives never see the light of day as a result. Therefore, a mining company’s potential to grow is limited by its financial responsibilities.
Wheaton, on the other hand, is not constrained in any way. It buys the commodities that miners have recovered, but it is not responsible for the running costs involved with mining activities. Furthermore, it can continue to expand to incorporate as many current mining sites as it desires.
Wheaton is the place to go when a mining firm wants money to begin a new project. It drafts a written agreement that states that they receive a particular proportion of the new project’s yield. The prices of Wheaton Corp. stocks also do not drop significantly, so investors do not need to worry about buying stocks in a bull market.
3. A Plethora of Precious Metals
In recent years, Wheaton has been diversifying its investments rather than focusing solely on gold. Silver sales account for slightly more than half of the company’s earnings in 2021. It also made up a substantially bigger part of the yields when the organization initially started.
To close the difference, the corporation has dramatically increased gold output revenue. A 70 percent gold stream in a Canadian mining site and a 25 percent gold stream in a Brazilian operation are among their agreements.
4. One of the Highest Cashflows in the Precious Metals Sector
A company’s valuation has a significant impact on whether it is a good investment. Wheaton is an excellent pick for a number of reasons.
Wheaton has a greater price-to-cash-flow ratio since its profit margins are much better than conventional mining businesses. In fact, they’re around 25 percent higher than industry standards on a continuous basis, making Wheaton Precious Metals an excellent choice for investment.
A Greater Demand for Precious Metals
Experts also forecast that silver and gold prices may continue to increase in the following months. The current global economic effects have been so devastating that they could substantially change how people see precious metals stocks. The demand for precious metals is substantially higher than it was previously, so you can expect a good return on your investment when you choose to invest in Wheaton Precious Metals.
5. Wheaton Corp. Dividends
The main economic benefit of stocks over tangible assets is dividends. You are shielded against inflation if you invest in tangible silver and gold. When you need money, you can sell these assets. They may also rise in value over time as a result of good economic forecasts for precious metals.
Dividends Versus Precious Metals Investments
However, they do nothing but wait when precious metals are kept in a bank vault. They don’t pay out dividends or interest. However, when you invest in a real company, on the other hand, you receive a percentage of the revenue generated based on the number of shares you own, making an investment in a company a better deal than a precious metal investment.
Wheaton also has a buyback program once you’re prepared to sell your shares. A quarterly dividend payment is included with each share.
In 2015, the corporation purchased back approximately 20 million stocks, reducing the number of outstanding shares and allowing for higher earnings per share. This was a sound financial decision because it improved the business’s worth in terms of the value of each share.
Is Wheaton Precious Metals Corp. a Scam or a Legitimate Way to Profit from Precious Metals?
Wheaton Precious Metals is a legitimate business in which you can invest if you wish to profit from it. You won’t be able to buy physical gold or silver through them, but you can receive dividends or earnings from your shareholdings.
It can sustain higher profit margins than mining firms. They achieve this by forming partnerships with mining enterprises and purchasing a portion of the revenue generated by the associated mining companies at a lower price. This allows them to accumulate and sell for a large profit over time.
The Characteristics of a Legitimate Company
The business also displays great transparency, providing its company information, including a breakdown of its management, which is not characteristics of scam websites or companies. Therefore, we can conclude that Wheaton Precious Metals is a legitimate business and a great option for those looking for investment opportunities.
The Bottom Line
If you are considering an investment in Wheaton Precious Metals stocks, then you may be making the best financial decision. There are so many advantages to buying these Canadian stocks, including being a part of a company with diversified contracts with several companies in the mining industry, an excellent track record, great analyst ratings, and better opportunities for earning.