Motley Fool contributing writer Dan Caplinger describes how Silver Wheaton (WPM -0.30%) currently enjoys the benefits of its business model, silver streaming. 

SLW provides financing for mining partners such as Barrick Gold, Primero Mining, and Vale in return for rights to buy future production at discounted prices. The recent deal that Silver Wheaton struck with Brazilian mining giant Vale provides diversification into gold production.

In the video below, Dan explains three of the risks Silver Wheaton faces: high expectations, falling bullion prices, and potential competition.