Franco-Nevada Corp. (FNV.TO)

(Market Call Minute.) The best gold stock out there.

Technically, this is in an upward trend and recently broke through a resistance level. Also, it is outperforming the market. Seasonally, the stock has done very well from the middle of July through until October. We are just about to enter a period of seasonal strength. Any weakness between now and July would be an opportunity to buy more.

He is not a gold guy, but if he were going to buy anything in gold, this one would probably be at the top of his list. They have a smart formula of being a royalty collector, rather than a miner.

A very reasonable name to own. Their business is basically all free cash flow. Expensive, but best in class management team. They have royalties on the best assets around the world. A very solid name to own. Dividend yield of 1.3%. (Analysts’ price target is $95.47.)

(A Top Pick April 19/16. Up 7%.) He is not a big gold bug, and not overly bullish on the gold sector, but what is good about this company is that they are a financier, really the “financier of last resort”. When the market isn’t interested in small companies, they’ll go in and buy a royalty stream.

(A Top Pick Feb 7/17. Up 0.55%.) A conservative play in a non-conservative sector. Has always viewed this as a kind of financial services play. However, if you view it as a precious metals play, it is a company that is going to grow its earnings and cash flow by 16% a year for the next few years. Very little mining risk. They’ve also announced they’ve started to grow their energy royalty business. A very safe play on precious metals.

(A Top Pick March 15/16. Up 9%.) He has to be a little careful, because he is not a huge Bull on precious metals. There was a very good trade in precious metals in 2016, and it kind of ran out of gas. This is a chicken way to invest in gold, because they get royalties. A great business model, because they just reap revenue as companies produce, and it doesn’t matter if the companies are making money or not.

This is how he plays gold for his dividend fund. It is a streaming royalty company, so they don’t have exposure to exploration hiccups. It is less volatile than the gold price, but pays a dividend and still gives you exposure to higher earnings when gold prices do go up.

A very safe way to play gold. It is a royalty company, not a miner, so there are no mining risks. It is in geographically safe jurisdictions, so you don’t have the same risks of a project being taken back and privatized by a government. Diversified broadly across tons of different royalties, not just in precious metals, but also in the oil/gas space. Dividend yield of 1.31%. (Analysts’ price target is $96.01.)

He owned it until recently. 1% yield. He would need it to double in 10 years. They are doing such a good job and so may be able to in fact double it in 10 years. He is continuing to analyze it. He prefers OR-T.

He has always loved the royalty model. They have done a remarkable job. (Analysts Target: $77.65) Their recent results were spectacular. Buy it in Canada.

(A Top Pick Nov12/15. Up 33.84%.) The highest quality gold company globally. They have extremely high quality assets, in really, really long live mines. Expensive, but you pay up for quality. He sees gold prices going higher in the next 3-5 years, and this will be a prime beneficiary, with much less risk than the sector as a whole.

This would be one of her favourite gold stocks. She loves management and their strategy. One of the appeals is that they don’t actually have to do any exploration. It doesn’t have very high leverage to gold. If you are just going to hold a name, this is just as good as any.

There has been technical damage in golds in the last 2.5 months as the US$ has firmed up a little. The sector has seen deterioration in breadth, so lots of stocks have broken down quite badly. If you had to own one, this is the one you would want to own. It is really a royalty stream, which is pretty attractive. You are getting a yield, and it will grow over time. Gold is probably into some support here. If it is going to rally, it is going to rally from here.

Gold is really a hedge against currency volatility more than inflation. Gold long-term, is a pretty good hold, and the best place to be is in the producers. The stock is falling back to test the September low. If this was breaking down below $87, he would have a bit more concern. You’ll have to live with volatility for a while.