Barrick Gold Corporation (USA) (ABX): Still Time to Benefit From Silver Wheaton Corp. (USA) (SLW)

There is still time
While shares of the silver streamer have risen sharply over the past month, I see additional upside in the stock over the medium and long term. Silver Wheaton continues to have the best business model in the industry and is maintaining its low cost structure. Demand for gold has been very strong in both India and China, and any bullish news for precious metals accrues to the benefit of silver as well. The extensive industrial applications of silver make it likely that expanded economic recovery will have a less severe impact on silver than gold — although gold is not lacking in industrial applications.

Miners in general have a leveraged position relative to precious metals prices, and the low cost at which it is able to sell means that is even more critical. As the silver market continues to show signs of strength, this should help drive Silver Wheaton, making it not too late to invest.

Fool contributor Doug Ehrman has no position in any stocks mentioned, and neither does The Motley Fool. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.