Silver Wheaton: The Risks

Motley Fool contributing writer Dan Caplinger describes how Silver Wheaton currently enjoys the benefits of its business model, silver streaming.

SLW provides financing for mining partners such as Barrick Gold, Primero Mining, and Vale in return for rights to buy future production at discounted prices. The recent deal that Silver Wheaton struck with Brazilian mining giant Vale provides diversification into gold production.

In the video below, Dan explains three of the risks Silver Wheaton faces: high expectations, falling bullion prices, and potential competition.

If you are looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, then Silver Wheaton provides a unique play on the future of silver. SLW has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.

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Fool contributor Dan Caplinger owns shares of Silver Wheaton. The Motley Fool owns shares of Companhia Vale Ads and Primero Mining. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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