Gold's $6,000 Target Sparks Interest in Streaming Model: Why Wheaton Precious Metals Keeps Attracting Investors

As major financial institutions increasingly project gold reaching $6,000 an ounce, conversations around precious metals investment are heating up. While many investors turn to physical gold or mining stocks, there’s a quieter player in the space that’s been stealing the show: Wheaton Precious Metals (NYSE: WPM).

The numbers tell a compelling story. Over the past year, Wheaton’s shares have climbed 128%—nearly double gold’s 68% gain. Over longer periods spanning three, five, and even ten years, the pattern repeats: this Vancouver-based company consistently outpaces both gold and silver. With just 44 full-time employees, it’s punching well above its weight.

The Streaming Model: Why One Deal Can Generate Hundreds of Millions

The secret lies in how Wheaton Precious Metals operates. Rather than mining gold itself, it finances mining projects in exchange for the right to purchase a set percentage of production at a steep discount to market prices—typically 80% below spot price.

Consider the company’s recent deal with Hemlo Mining to develop a mine near Lake Superior. Wheaton provided $300 million in upfront financing. In return, it secured the right to buy 10% of payable gold output until 135,750 ounces are delivered, at just 20% of gold’s spot price.

At today’s gold price of $4,626 per ounce, that initial tier alone represents $502 million in potential profit on a $300 million investment. If gold climbs another 10%? That figure jumps to $553 million, while Wheaton’s financing costs remain unchanged. The company holds 23 such agreements globally, with mines averaging 27 years of expected production life.

Beyond Spot Price: Why Discount Buying Creates Outperformance

This is where the math gets interesting. During gold booms, every percentage point of price increase amplifies Wheaton’s returns far beyond what miners or gold itself can deliver. The streaming structure creates natural leverage without the volatility of traditional leverage products.

Last year, Wheaton also secured rights to 300,000 ounces from a Nevada project at the same 80% discount, demonstrating how the company builds a diversified portfolio across politically stable mining jurisdictions.

The Often-Overlooked Income Component

Beyond capital appreciation, Wheaton returned something precious metals cannot: dividends. In 2025, the company increased its payout by 6.5%, yielding 0.5%. While modest on the surface, a growing dividend stream from an asset appreciating alongside gold prices offers a unique combination of income and growth.

What’s Next as Gold Reaches New Milestones

With industry forecasts positioning gold toward $6,000 and Wheaton’s proven ability to outperform across market cycles, the company has positioned itself as a beneficiary of multiple scenarios. Whether prices surge, consolidate, or surprise to the upside, the 80% purchase discounts baked into existing contracts continue generating returns.

This structural advantage—combining commodity exposure without commodity ownership—continues to explain why investors watching this gold cycle are paying attention to the company financing it.