Better Buy: Franco-Nevada Corporation vs. GoldCorp
During the 2007-2009 recession, gold went up 25% while the S&P 500 fell a painful 36%. That's why many investors seek some exposure to precious metals. If owning bullion isn't your thing, then key industry players like GoldCorp (NYSE: GG) and Franco-Nevada (NYSE: FNV) should be on your watch list. But which is the better buy? Here's why I think it's Franco Nevada.
GoldCorp is a miner. To oversimplify the business, the company tries to find places where there's gold in the ground. It then builds a mine, which is complex legally, socially, and technically. And once that process is done, which can take years and millions (if not billions) of dollars, it finally gets to mine for gold. Then GoldCorp has to worry about how much it costs to run the mine, how long the mine can produce, and, eventually, the cost of cleaning up a spent mine.
Image source: Getty Images.
Source: Fool.com
