As gold prices tumbled during Friday's trading session, precious metals companies were dragged down too, including Goldcorp (NYSE: GG ) and the gold ETF, the SPDR Gold Trust (NYSEMKT: GLD ) . Given its recent increase in exposure to gold, Silver Wheaton's (NYSE: SLW ) inability to escape the slide is not a big surprise. Despite increased signs of global economic instability, gold fell below $1500 for the first time since July 2011.
In the below video, Fool.com contributor Doug Ehrman discusses the impact of gold prices on the stock, both in the immediate-term and longer-term investment perspective. Silver Wheaton remains one of the strongest plays in the silver market, but recent price action should not be overlooked.
If you are looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, then Silver Wheaton provides a unique play on the future of silver. SLW chooses to finance the mining of silver; it has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.