Why Wheaton Precious Metals Rallied in August

Shares in gold and silver mining "streamer" Wheaton Precious Metals (NYSE: WPM) rallied 37% in August, according to data from S&P Global Market Intelligence.Not only did the price of both gold and silver rebound during August, but Wheaton Precious Metals also delivered a strong second-quarter earnings report. The impressive results showed that Wheaton continues to be an asset-light way to play the gold and silver mining industry.Wheaton is a "streamer," which means it finances parts of mining projects worldwide in exchange for an equivalent portion of the mine's output. Streamers offer a win-win scenario for miners, as miners don't have to raise as much capital or take on as much debt to fund their capital-intensive mining projects. Meanwhile, streamers can develop a diversified portfolio of projects, limiting their own risk. However, if the price of the underlying mined commodity spikes over time, streamers can earn exceptional returns.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool