Motley Fool contributing writer Dan Caplinger explains silver streaming, the unique business model of Silver Wheaton (SLW +7.35%), whereby SLW offers financing to mining companies in return for the right to buy future production of silver at a discount.
In this video, Dan shares how adequately financed potential competitors might pose a threat to Silver Wheaton in the future.
Additionally, Dan reviews the pros and cons of SLW's policy of paying a cash dividend based upon 20% of cash flow.
Lastly, Dan describes how the effects of leverage may make owning Silver Wheaton more volatile than a more traditional alternative, such as investing in shares of iShares Silver Trust (SLV +6.45%).
