Better Buy: Wheaton Precious Metals vs. Franco-Nevada Corp

Wheaton Precious Metals (NYSE: WPM) and Franco-Nevada Corp (NYSE: FNV) are both great ways to get exposure to silver and gold. While their basic business models are similar, there are some important differences between the two companies. My pick of the pair is Franco-Nevada. Here's why.

Wheaton and Franco-Nevada are both streaming companies. That means they provide miners cash upfront for the right to buy gold and silver at reduced rates in the future. This allows the companies to avoid the headache and risk of actually running mines. It also locks in low prices and wide margins. To put a number on that, Wheaton's average price for gold is around $400 an ounce and its average price for silver is around $4 an ounce (both are materially lower than spot prices for those metals today).

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Source: Fool.com