Key Points
Precious metals staged quite an impressive price rebound on Wednesday. As often happens in such situations, the prices of stocks tied to the commodities rallied in sympathy. That was excellent news for Wheaton Precious Metals (NYSE: WPM) investors, as their stock rose by more than 11% across that trading session.
Treasury doubles down
This was the dictionary definition of a top-down rally. That’s because it was prompted by the Federal government (specifically the Treasury Department) announcing that it would at least double its long-term bond repurchases to $4 billion or more per operation from the current $2 billion.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
This, understandably, drove bond prices higher; as prices of such assets rise, yields decline. And since U.S. bonds are a global financial benchmark due to the reliability of our government in paying them back, those yields are indicative worldwide.
When they drop, all things being equal, demand for riskier assets (such as cryptocurrencies) or non-yielding investments (precious metals) tends to rise. This drives up prices for these instruments, and plays — like the royalty “streaming” company Wheaton Precious Metals — that are associated with them.
Another factor in the sudden, sharp rally in gold, silver, and related assets was that their prices had generally been slumping since they notched all-time highs earlier this year.
Caution warranted?
Given how sharp and news-dependent that rally was, I wouldn’t count on it to last very long.
Inflation remains a concern for many monetary policymakers, despite encouraging price news lately, and there’s a decent chance the Federal Reserve will raise interest rates in the near future. Given that, I’d be cautious with gold and silver assets, and I’d be cautious with Wheaton Precious Metals stock.
Should you buy stock in Wheaton Precious Metals right now?
Before you buy stock in Wheaton Precious Metals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wheaton Precious Metals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 213% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 19, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
