Wheaton Precious Metals
This precious metals royalty stock makes good sense for more conservative investors who are looking to have exposure to the sector. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.
Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, the Lundin Mining Zinkgruvan mine in Sweden, and Glencore’s Antamina and Yauliyacu mines in Peru, and then sells the silver and gold into the open market.
Holders of Wheaton Precious Metals stock are paid a 1.36% dividend. The BofA Securities price target of $56 compares with a $55.23 consensus target and the most recent close at $41.86 a share.
This is a smaller market cap gold-mining stock for investors looking to add a higher share count and some inflation protection. Yamana Gold Inc. (NYSE: AUY) is a Toronto-based mining company with operations and development projects in North, South and Central America. The company is focused on growing profitably through the careful management of cost.
Yamana engages in operating mines, development stage projects and exploration and mineral properties, chiefly in Canada, Brazil, Chile and Argentina. The company primarily sells precious metals, including gold, silver and copper. Its principal mining properties comprise the Chapada and Jacobina mines in Brazil, the Canadian Malartic mine in Canada, and the Cerro Moro mine in Argentina and the El Peñón and Minera Florida mines in Chile.
Shareholders receive a 2.72% dividend. Berenberg Bank has a $7.40 price target. The consensus target is $6.34, and Yamana Gold stock closed at $4.41 on Tuesday.
The SPDR Gold Shares ETF (NYSE: GLD) is perhaps one of the best pure plays on gold for investors. The trust that is the sponsor of the fund holds physical gold bullion as well as some cash. Each share represents one-tenth of an ounce of the price of gold. It should be noted the fund does not pay a dividend.
Proper asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only do they hedge inflation, which could be huge now and over the long term, but they can really help if the market does go into correction or bear market mode, as they tend to trade inverse to markets.
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