When most people think about investing in gold or silver, they picture shiny coins, heavy bars, or maybe a gold ETF like GLD. But what if there were a smarter, lower-risk way to benefit from rising gold and silver prices—without ever owning a single ounce of metal or running a risky mine?
Welcome to the world of precious metals streaming and royalty companies.
These companies have quietly become one of the most efficient ways to invest in gold and silver. They offer upside when metals rise, they’re well-insulated from the costs and headaches of mining, and they’ve delivered impressive long-term results. In short, if you’re looking for a way to add gold exposure to your portfolio with lower risk and high return potential, this could be the golden ticket.
Let’s break it down in plain English.
What Is a Royalty or Streaming Company, Anyway?
Think of it like this: miners dig gold out of the ground, and that’s expensive, unpredictable, and often risky. Streaming companies take a different approach. Instead of mining, they finance the miners. In return, they get a percentage of the gold or silver produced (called a royalty), or they buy the metal at a steep discount (called a stream).
They let someone else do the hard, dirty work of mining—while they collect a cut.
Why This Matters for Investors Like You
Here’s why this approach can be a win-win:
- No mining risk: They don’t own the mines, so they aren’t exposed to rising costs, labor strikes, equipment failures, or environmental fines. If a mine has trouble, it’s not their problem.
- Built-in inflation protection: Gold often rises when inflation spikes. Streaming companies benefit directly from higher gold prices without having to worry about higher costs eating into profits.
- Diversification: The top streaming companies have dozens of deals across multiple continents. If one mine hits a snag, dozens of others keep the income flowing.
- Steady profits and strong balance sheets: Many of these companies operate debt-free and maintain high profit margins. That’s rare in the world of mining.
- Potential for outperformance: Because of their efficient model, royalty companies have often outperformed physical gold, gold miners, and even some gold ETFs over the long term.
The Big Players You Should Know About
Here are a few of the best-known and most respected royalty and streaming companies:
1. Franco-Nevada (FNV)
Franco-Nevada is the pioneer of this model and arguably the gold standard (pun intended). With over 100 producing assets worldwide, it’s one of the most diversified names in the business.
- Roughly 67% of its revenue comes from gold.
- It has no debt and over $2 billion in available capital.
- Franco-Nevada doesn’t just follow gold—it often outperforms it, thanks to high margins and low risk.
This is the kind of company that many gold ETFs own as a top holding.
2. Wheaton Precious Metals (WPM)
Originally focused on silver, Wheaton has become a major player in gold, with a growing share of revenue from the yellow metal.
- Streams from 13 operating mines and 26 development projects.
- Global reach with strong cash flow.
- Offers a great balance between gold and silver exposure.
It’s a strong pick for those who want both stability and upside.
3. Royal Gold (RGLD)
With roots going back to the 1980s, Royal Gold has been around longer than most.
- Interests in over 170 properties, including 42 producing mines.
- About 75% of its income comes from gold.
- Has a blue-chip feel with steady dividend growth.
Royal Gold tends to attract more conservative investors who want gold exposure with less volatility.
4. Osisko Gold Royalties (OR)
Smaller than the three above, but growing quickly.
- 185 total assets, with 23 producing.
- Flagship royalty on Canadian Malartic, one of the biggest gold mines in Canada.
- Significant exposure to North America, with global expansion underway.
Osisko blends stability with a touch of entrepreneurial flair.
5. Sandstorm Gold (SAND)
Sandstorm is a bit more aggressive and growth-oriented.
- 230+ royalties and streams, with 40+ producing.
- Exposure across multiple continents.
- Led by a dynamic founder with a clear growth vision.
For investors willing to accept a little more risk for more upside, Sandstorm could be a smart addition.
How These Companies Stack Up vs. Gold and Gold ETFs
Let’s say you’re trying to decide: should I buy physical gold, gold ETFs, or a streaming company? Here’s a simple way to think about it:
| Feature | Physical Gold | Gold ETFs | Streaming Companies |
|---|---|---|---|
| Inflation Hedge | Yes | Yes | Yes (plus leverage to upside) |
| Income | No | No | Yes (small but steady dividends) |
| Operational Risk | None | None | Low (diversified across mines) |
| Costs | Storage/Insurance | Expense ratio | None for investors |
| Liquidity | Moderate | High | High |
| Growth Potential | None | Mirrors gold | High |
Streaming companies offer the best of both worlds: protection against inflation and the chance to grow your wealth over time.
What to Watch For
Like any investment, streaming companies aren’t risk-free. Here are a few things to keep in mind:
- They’re still stocks: That means they can be affected by overall market swings, even if gold is steady.
- Mine shutdowns or political issues: If a mine closes or a country becomes unstable, income can be temporarily impacted.
- Volatility: While generally less volatile than miners, streaming company stocks can still move up and down with investor sentiment.
That said, the risks are generally much lower than investing in a gold mining company.
How to Invest in These Companies
You can buy individual stocks like FNV, WPM, or RGLD through any brokerage account.
Or, if you want a diversified approach, consider an ETF like:
- GOAU (U.S. Global GO GOLD and Precious Metals Miners ETF): A fund that gives extra weight to royalty companies.
- SGDM (Sprott Gold Miners ETF): Includes several royalty firms as part of its portfolio.
While there isn’t an ETF that invests only in royalty companies, these two offer solid exposure.
The Bottom Line
If you’re looking for a smart, stable way to invest in gold and silver, precious metals streaming and royalty companies deserve a closer look.
They combine the safety and inflation protection of gold with the income and growth potential of well-run businesses. With global diversification, strong balance sheets, and a history of outperformance, they offer something traditional gold investments don’t:
Efficiency and upside without the risk of a shovel.
Whether you’re a cautious investor looking to preserve wealth or someone seeking moderate growth with a safety cushion, these companies could be your golden middle ground.
Now that’s what we call striking gold.
Disclaimer:
This blog post is for informational and educational purposes only. It is not intended as investment advice, tax advice, or a recommendation to buy or sell any security. The information provided reflects the author’s personal opinions based on publicly available data believed to be accurate at the time of writing. Readers should conduct their own research or consult a qualified financial advisor before making any investment decisions. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results.