Quote:
Originally Posted by suzuka84
Guys, looking at the current geopolitical environment with gas prices going into the $100/barrel territory and precious metals hitting new highs the perfect companies to ride would be companies that provide financing in exchange for future production.
Gold Wheaton was bought recently. Silver Wheaton is massive with zero risk other than silver prices remaining high. Look into Sandstorm Resources (run by the ex-CFO of Silver Wheaton) and Tanzania Royalty Exploration. The only problem and the big benefit of these types of companies is the fact you and I can't hang up a sign and pretend to dabble in this as it requires a huge capital outlay - you're providing mine financing in exchange for future production so you're dependent on rainmakers to put these deals together. It isn't the matter of finding a good resource but rather convincing companies to give up future production in the present environment. The guys behind these companies have no problems doing it. Gold Wheaton was a Guistra and Aquilina combination. Silver Wheaton was a Telfer company so the CEO of Sandstorm can be assumed to be tight with Telfer, giving the company access to big capital if required.
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Why is Gold Wheaton so different in price to Silver Wheaton?