A Strong Case for Buying Franco-Nevada Corp Over Wheaton Precious Metals

Franco-Nevada Corp (NYSE: FNV) and Wheaton Precious Metals (NYSE: WPM) each provides investors exposure to precious metals in a unique way. But one of the main reasons to add gold and silver to your portfolio is diversification -- and on that score, one of these precious metals streaming companies has a clear edge. Here's a strong case for buying Franco-Nevada Corp over Wheaton Precious Metals.

Both Franco-Nevada and Wheaton are streaming companies, which means they provide miners cash up front for the right to buy gold and silver in the future at reduced rates. By inking these types of deals, streaming companies avoid the risks, costs, and complexity of running mines and, of course, they lock in low prices. For example, Wheaton's average cost for gold is roughly $400 an ounce, and for silver, it's around $4 an ounce (both well below current spot prices).

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Source: Fool.com