Wheaton Precious Metals: Why This Gold Stock Could Be a Good Share to Buy in 2026

If you’re looking for good shares to buy now in the precious metals space, Wheaton Precious Metals presents a compelling case that deserves your attention. What makes this company particularly interesting isn’t just that it has massively outperformed gold itself, but how it has achieved such returns with minimal operational complexity—a combination rarely seen in the commodities sector.

The numbers tell an extraordinary story. Over the past year alone, this Vancouver-based company’s shares have surged 90% in line with gold’s climb, yet over five years the comparison becomes striking: 221% returns versus gold’s 187%. But the truly remarkable figure is the long-term trajectory since 2005—shares have generated returns of 4,153%, dwarfing gold’s 1,012% appreciation over the same two-decade span.

What makes this performance even more impressive is the efficiency with which it was achieved. The company operates with just 44 full-time employees, generating approximately $35 million in gross profit per team member in the most recent quarter. This stands in sharp contrast to traditional mining operations, which carry substantial capital requirements and operational risks. The company has never mined a single ounce of precious metal—instead, it profits through an entirely different mechanism.

The Streaming Model: How Precious Metals Are Acquired at Massive Discounts

Rather than extracting ore from the ground, Wheaton Precious Metals (NYSE: WPM) operates through a business model known as streaming. The mechanics are straightforward but powerful: the company provides upfront capital to mining operations and receives the contractual right to purchase a percentage of future production at deeply discounted prices locked in at inception.

Consider a recent transaction to understand how profitable this approach can be. In September 2025, the company extended $300 million in financing to Hemlo Mining. In return, Wheaton secured the right to purchase 10.13% of the mine’s gold output—up to 136,000 ounces of payable gold—at just 20% of the prevailing spot price. This represents an 80% discount.

The profit potential embedded in this single arrangement is substantial. Using current gold prices near $4,893 per ounce, those first 136,000 ounces would cost the company approximately $133 million to acquire, yet carry a market value of $665.5 million. After deducting the initial $300 million financing commitment, this tranche alone generates over $200 million in potential profit. This calculation doesn’t account for the additional “dropdown thresholds” built into the agreement, which allow further purchases at comparable discounts as production milestones are reached.

With dozens of similar arrangements across mining operations globally, the company’s consistent outperformance relative to spot gold prices becomes understandable. Across one-year, three-year, five-year, and ten-year periods, shares have typically delivered returns approximately double those of physical gold, according to the company’s January 2026 investor presentation.

A Lean Operation With Outsized Returns

The operational efficiency of this model is its defining characteristic. By financing rather than owning mines, Wheaton avoids the capital intensity, geological risk, and long development timelines that plague traditional precious metals producers. There’s no drilling, no environmental remediation, no workforce to manage at production sites. The company functions essentially as a financial intermediary with optionality—it purchases production when economical and can walk away from unprofitable tranches.

This capital-light approach explains how 44 employees generate such disproportionate returns. The model is highly scalable: each new streaming agreement adds production capacity and profit potential without proportional increases in administrative overhead.

Protecting Against Gold Price Risk

One legitimate concern for potential investors is the impact of a precious metals price correction. Should gold decline from current levels, the company’s margins would compress, since it contracts to sell at predetermined discounts rather than current spot prices.

However, the discount structure provides substantial downside protection. The 80% reductions embedded in most streaming agreements create a significant cushion. Even if gold prices decline 30% from current levels, the company would still profit substantially on its contracted purchases. The agreements essentially give the company a long-dated call option on future gold production at fixed strike prices far below what the market would charge.

Is Now the Right Time to Buy In?

For investors seeking exposure to the gold market through a vehicle offering dividends and superior leverage to commodity prices, shares present a logical option. The combination of proven outperformance, operational efficiency, downside protection, and a growing portfolio of production rights creates a defensible investment thesis.

The streaming model has demonstrated durability across multiple commodity cycles since 2005. The company’s track record of consistently exceeding gold’s returns—often by a factor of two—suggests the business model advantages are durable rather than cyclical. Whether you’re building a precious metals position or seeking an alternative to traditional mining equities, Wheaton Precious Metals warrants serious consideration as a good share to buy in the current market environment.