“What’s the best gold stock to buy today?”

It’s a question I get a lot… from readers, friends, and even my own family. Everybody always wants to know what to buy. As famous humorist Will Rogers once said, “Don’t gamble; take all your savings and buy some good stock, and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.”

[ad#Google Adsense 336×280-IA]That’s funny, but it’s true: Great stocks soar higher than the overall stock market in good times and fall less in bad times.

It’s something we’ve told longtime Growth Stock Wire readers again and again.

And today, we have a perfect example in gold stocks…

Longtime readers know we’re big fans of gold “royalty” companies like Franco-Nevada (FNV). These companies don’t actually operate mines.

Instead, they finance lots of early-stage mining projects, then earn revenue streams (called “royalties”) on mine production if things work out. In other words, a royalty company takes none of the mining risk… It simply collects its portion of the profits.

Because of this, Franco-Nevada is one of our favorite gold stocks. And if you’ve been with us for long, you know we’ve told you to buy it repeatedly over the years… in October 2013, July 2014, December 2014, and again last October.

Take a look at the following chart, which compares Franco-Nevada’s performance with the Market Vectors Gold Miners Fund (GDX)…

As an added bonus, Franco-Nevada also collects royalties from several resources, not just gold. So the company can be profitable even if gold prices fall. Consider this: From September 2011 to December 2015, gold prices fell nearly 45%. Over the same period, Franco-Nevada shares rose 5% (including dividends).

You can see in the following table that Franco-Nevada also outperformed gold stocks over almost every time period:

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Going back to January 2009, Franco-Nevada is up 327%, while GDX is down 29%. That is the power of royalty firms. And based on our research into the company’s assets, that outperformance should continue.

If you own just one gold stock, Franco-Nevada should be the one.

Good investing,

Matt Badiali

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Source: Growth Stock Wire