Investor Fear Remains High

This fear has led to an increase in buying of safe haven assets such as cash, treasuries and precious metals.

In times of uncertainty gold and precious metals are a good store of value. They are even more attractive today with global central banks printing money like there is no tomorrow and real interest rates becoming more negative by the day. The coronavirus pandemic finally produced enough safe haven buyers to push gold prices to levels that haven't been seen in 6 or so years. This is great news for precious metals businesses.

Today's focus is on Wheaton Precious Metals (WPM). This is a $20 billion royalty and streaming company. The company provides cash to support miners fund various projects and then collects royalties on the yearly production for the life of the mine. Rising gold price goes directly to WPM bottom line since their costs for each royalty never goes up.

The above chart shows very positive investor reaction to this environment with the stock more than doubling over the last 12 months. Today's economic uncertainty and global central bank policies should lead to higher gold prices in the periods to come. In past gold bull markets WPM has increased faster than gold and is an easy way to gain leverage to rising gold prices.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.