The Wheaton Principle - why you should certainly be invested in all the Wheaton Principle companies - Streaming

I call it the Wheaton Principle - Not to be confused with DiPasquale-Wheaton Model in real estate or Wheaton's Law.

What is the Wheaton Principle?

In 2005 a company listed on the New York Stock Exchange under an IPO - Initial Public Offering, calling itself Silver Wheaton Corp (currently, today, Wheaton Precious Metals) derived from a small miner operating along the Wheaton river in the Yukon.
Silver Wheaton - as it was then, was pretty much destined to succeed because they set out with a new model of operating in the precious metal space.

Instead of buying a Silver or Gold mine, not truly knowing if it would yield the amount of precious metal it promised, not knowing if government legislation would tax the operation too heavily or worse - close the mine down, not knowing if industrial action would one day bring the mine to its knees, not knowing if mineral rights in the said area could be seeded or claimed by someone else, such as a minority group or indeed mineral rights never granted in the first place, not knowing if for some reason the Precious Metals market would slump or crash, not knowing the outcome of equipment failures, and, investing in only one or two mines and baring the associated risk of the lack of spread of exposure or risk, Silver Wheaton raised money - not to buy land to start a mine or buy a mine already operating, but to lend money to a whole range of miners and mining companies in exchange for silver itself, at a guaranteed price in the future.

This worked for both parties - Miners and Silver Wheaton -

Miners got their 'limited hassle' working capital (money) from Silver Wheaton whether they were producing ounces of Silver or waiting for Mineral Rights, industrial action to subside, Governments to favor the operation or simply for the Winter and Snow season to end if their project was an open cast mine for instance.

Silver Wheaton got to limit their risk by having a stake in many mines - not all of them, at the same time, would have the host of complications mines have to face, they would not have to deal with industrial action, weather, problems with governments, natural disasters, cash flow problems and equipment failures and so income would be streaming continuously.

This is called income streaming or rights streaming.

Silver Wheaton's model became so successful that at the height of the fall out of the 2008 Market crash, Silver Wheaton's share price was trading 15 times higher than at the time it entered the market a few short years before - that's a 15 bagger.

Silver Wheaton, now Wheaton Precious Metals, stands, yet again, at the base of an almost guaranteed lift in Silver prices and the looming potential of a stock market crash to boot.

Silver Wheaton has also weathered and is emerging from a slump in yield of mines world wide in which the amount of Silver being pulled from the ground has dropped as much as 40% since 2015.

[Read my other article :- The New Case for Silver and ....the Breadline Boomers]

The situation cannot have it both ways - either the amount of Silver coming from the ground stays low and eventually there is not much silver around and the price sky rockets and/or ..... mines start producing more metal and the price rises more steadily to cope with and accommodate coming demand.

Either way Wheaton Precious Metals wins - its proven that the Wheaton Principle works and Wheaton is well established and robust, and the time for Silver price increases is upon us.

But it would not have be long before others copied the Principle of Income Streaming with similar success and potential.

Enter: Cannabis Wheaton
and Bitcoin Wheaton (well, Hive Blockchain Technologies to be more exact)

After exceptional price increases in January 2017, Cannabis Wheaton - also a streaming company but in the Cannabis production, research, pharmaceuticals and leisure consumption space, Cannabis Wheaton is again increasing in price.
Furthermore, the Cannabis revolution is more mature and advanced and established now, with Canada on the edge of complete legalization, even for recreational use by its citizens, and many states in the USA are following suit.
Far more companies are in latter stages of pain prevention research and Dementia combating using Cannabis.
Governments are now aware of the enormous tax collection potential given that the Cannabis industry is set to eclipse the Tobacco industry by as much as 10 times.
And the benefits of removing the Cannabis industry from the clutches of crime and criminals does not warrant discussing - its a massive step forward and significantly beneficial in lowering prison populations and numbers.

But Wheaton does not end there.

The model or principle has also been adopted by a Bitcoin concern.

Genesis Mining is the largest Cryptocurrency Cloud Mining concern on earth and oddly, is not based in China
Genesis has partnered with Hive Blockchain Technologies.
Apart from the obvious potential of Blockchain in the future and Cryptocurrencies in general and in specific, where you are in effect investing in all the businesses that use blockchain and crypto tech by carrying out mining, there exists a very significant person in the background advising the Hive board of directors.

Advising them, is none other than Frank Giustra - a heavy weight billionaire philanthropist, Streaming expert, founder of many very successful corporations such as LionsGate Film - one of the worlds largest independent film companies.

And, you will also find Frank behind - you may have guessed it - Silver Wheaton too. Frank helped to create Silver Wheaton.

Donald Trumps dollar repatriation - where it becomes favorable for Multinational companies, especially American ones to bring back their operations and large amounts of money to American soil and his favorable tax incentives in general, coupled with his promise of large infrastructure spends in the near future is going to boost the US stock markets most certainly for the short term.

This is why we should be invested in traditional stocks again, for now - but not just any stocks - stocks that should not take a significant hit if the markets go south - so are reasonably safe.
But, stocks that are cutting edge, a little volatile and slightly off the radar for the highest potential return under good or bad market conditions, because, we definitely stand at a grave turning point in global economics and thus, should have our fingers in multiple pies. Traditional and new pies, pariah and revered.

Ptychadina Wealth

I do between 5 and 10 hours a day of investment research.
If you like what I write about and like my promotion and support of investments like cryptocurrencies and metals for the benefit of all of us -
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