Motley Fool contributing writer Dan Caplinger describes how Silver Wheaton (NYSE:SLW) 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.

Fool contributor Dan Caplinger owns shares of Silver Wheaton. The Motley Fool owns shares of Companhia Vale Ads and Primero Mining. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.