1 ETF That Tackles Warren Buffett's Biggest Complaints With Gold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2024
0mins
Source: NASDAQ.COM
Warren Buffett's Investment Views: Warren Buffett has a strong aversion to gold as an investment, considering it unproductive, while he is more open to silver due to its industrial applications and historical uses. Despite his general avoidance of precious metals, he has previously invested in silver and briefly held shares in Barrick Gold.
US Global GO Gold and Precious Metal Miners ETF (GOAU): The GOAU ETF offers investors exposure to companies involved in precious metal production, using a smart factor model for investment selection. With a year-to-date increase of 10.6% and a focus on royalty companies, it presents a potential opportunity for investors, even those who typically avoid bullion investments.
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Analyst Views on FNV
Wall Street analysts forecast FNV stock price to rise
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 225.840
Low
210.00
Averages
236.43
High
270.00
Current: 225.840
Low
210.00
Averages
236.43
High
270.00
About FNV
Franco-Nevada Corporation is a Canada-based gold-focused royalty and streaming company. The Company’s segments include precious metals, other mining and energy. The Company’s portfolio is diversified by commodity, geography and asset. Its assets include Candelaria, Antapaccay, Antamina, Condestable, Tocantinzinho, Cerro Moro, Salares Norte, Cascabel (Alpala), Posse (Mara Rosa), CentroGold (Gurupi), Calcatreu, and San Jorge. Its other mining assets include NuevaUnion, Taca Taca, Caserones, Copper World Project, Ring of Fire, Mt Keith, Crawford, Robinson, EaglePicher, Copper World Project, and Milpillas. Its United States assets include Stillwater, Goldstrike, Gold Quarry, Marigold, Bald Mountain, South Arturo, Mesquite, Castle Mountain, Stibnite Gold, Sterling, Granite Creek (Pinson) and Arthur Gold Project. Its Canadian assets include Detour Lake, Sudbury, Hemlo, Brucejack, Macassa (Kirkland Lake), Dublin Gulch (Eagle), Musselwhite, and Timmins West.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
New Strategies for Gold Investment in 2026
- Gold Investment Misconception: While purchasing physical gold or gold ETFs like SPDR Gold Trust offers direct exposure to precious metals, long-term investors may find this approach overly reliant on gold price fluctuations, making effective asset diversification challenging.
- Mining Company Advantages: For instance, Newmont Mining generated $3.1 billion in free cash flow in Q1 2026, benefiting from high gold prices, showcasing the profit potential of mining companies during price surges, although their operational risks and capital-intensive nature cannot be overlooked.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals mitigate operational risks by providing upfront cash to miners in exchange for the right to purchase gold at favorable prices, enabling long-term growth potential while maintaining diversified portfolios.
- Learning About Streaming Investments: Although streaming and royalty companies are relatively niche in the investment landscape, understanding these firms and their unique business models will be worthwhile for long-term investors looking to add gold exposure in 2026, as they offer better protection and profitability amid market volatility.
See More
Analysis of Gold Investment Strategies
- Gold Investment Options: Short-term investors can opt for gold bullion or gold ETFs, while long-term investors should consider mining companies like Newmont, which generated $3.1 billion in free cash flow in Q1 2026, reflecting strong profitability from high gold prices.
- Mining Company Advantages: Newmont's production capacity grows with rising gold prices, and despite the complexities and capital intensity of mining operations, its long-term growth potential makes it a noteworthy investment choice.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals provide upfront funding to miners in exchange for the right to purchase gold at favorable prices in the future, thereby reducing operational risks and achieving diversified revenue streams.
- Investor Recommendations: For long-term investors looking to add gold in 2026, streaming and royalty companies offer a more attractive business model; although they are relatively niche in the market, their stable profit margins and growth potential warrant further exploration.
See More
TD Cowen Upgrades Franco-Nevada to Buy with $291 Target
- Rating Upgrade: TD Cowen has upgraded Franco-Nevada from Hold to Buy with a price target of $291, citing that the stock trades near a five-year valuation trough despite its strong balance sheet and robust deal flow.
- Balance Sheet Strength: Franco-Nevada's balance sheet is considered the best positioned in the sector, with approximately $4.1 billion in financial capacity, enabling the company to pursue large-scale deal opportunities without capital restrictions.
- Strong Deal Execution: Over the past 24 months, Franco-Nevada has deployed more than $3.3 billion, with recent transactions skewed towards producing mines, resulting in an estimated addition of about 67,000 gold equivalent ounces to 2026 production.
- Cobre Panama Progress: Although the Cobre Panama restart is largely priced into the stock, the analyst notes that a full restart decision is unlikely until H2 of this year, as the environmental audit is still pending, with minimal economic impact expected from any amendments.
See More
Analyst Rankings in Precious Metals Sector
- Analyst Ranking Summary: The Metals Channel Global Mining Titans Index ranks its components based on averaged analyst opinions from major brokerages, indicating varied market perceptions; while a low rank may suggest poor stock performance, it could also present contrarian opportunities for bullish investors.
- FNV Stock Performance: Currently, FNV is trading up approximately 1.5%, showing relative stability compared to peers like Newmont Corp (NEM) which is up 2.3% and Barrick Mining Corp (B) which is up 3.4%, potentially attracting investor interest for rebound opportunities.
- Market Interpretation Variance: Investors interpret analyst ratings differently, as a low rank does not necessarily indicate poor stock performance; rather, it may provide significant upside potential for contrarian investors, thereby influencing market sentiment and investment decisions.
- Price History Comparison: A three-month price history chart comparing FNV with NEM and B reveals that while FNV remains stable, the divergence in market expectations regarding its future performance may impact investor buying decisions.
See More
Franco-Nevada Declares Quarterly Dividend of $0.44
- Quarterly Dividend Declaration: Franco-Nevada announces a quarterly dividend of $0.44 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 0.74% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable income.
- Payment Schedule: The dividend is payable on June 25, with a record date of June 11 and an ex-dividend date also on June 11, ensuring shareholders receive timely returns.
- Earnings Beat: Franco-Nevada reported a non-GAAP EPS of $1.85, beating expectations by $0.18, while revenue reached $597.3M, exceeding forecasts by $64.53M, showcasing the company's strong performance in gold investments.
See More
Franco-Nevada Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Franco-Nevada reported a Q1 GAAP EPS of $2.43, beating expectations by $0.19, indicating sustained growth in profitability and boosting investor confidence.
- Significant Revenue Growth: The company achieved revenue of $650.7 million, a 76.6% year-over-year increase, surpassing market expectations by $15.42 million, reflecting robust business expansion and strong market demand.
- Stable Sales Guidance: Franco-Nevada remains on track to meet its 2026 GEO sales guidance of 510,000 to 570,000 ounces, excluding potential contributions from Cobre Panamá, demonstrating confidence in future performance.
- Excellent Non-GAAP Results: The Q1 non-GAAP EPS was $1.85, exceeding expectations by $0.18, with revenue of $597.3 million, surpassing forecasts by $64.53 million, further affirming the company's financial health.
See More
New Strategies for Gold Investment in 2026
- Gold Investment Misconception: While purchasing physical gold or gold ETFs like SPDR Gold Trust offers direct exposure to precious metals, long-term investors may find this approach overly reliant on gold price fluctuations, making effective asset diversification challenging.
- Mining Company Advantages: For instance, Newmont Mining generated $3.1 billion in free cash flow in Q1 2026, benefiting from high gold prices, showcasing the profit potential of mining companies during price surges, although their operational risks and capital-intensive nature cannot be overlooked.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals mitigate operational risks by providing upfront cash to miners in exchange for the right to purchase gold at favorable prices, enabling long-term growth potential while maintaining diversified portfolios.
- Learning About Streaming Investments: Although streaming and royalty companies are relatively niche in the investment landscape, understanding these firms and their unique business models will be worthwhile for long-term investors looking to add gold exposure in 2026, as they offer better protection and profitability amid market volatility.
See More
Analysis of Gold Investment Strategies
- Gold Investment Options: Short-term investors can opt for gold bullion or gold ETFs, while long-term investors should consider mining companies like Newmont, which generated $3.1 billion in free cash flow in Q1 2026, reflecting strong profitability from high gold prices.
- Mining Company Advantages: Newmont's production capacity grows with rising gold prices, and despite the complexities and capital intensity of mining operations, its long-term growth potential makes it a noteworthy investment choice.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals provide upfront funding to miners in exchange for the right to purchase gold at favorable prices in the future, thereby reducing operational risks and achieving diversified revenue streams.
- Investor Recommendations: For long-term investors looking to add gold in 2026, streaming and royalty companies offer a more attractive business model; although they are relatively niche in the market, their stable profit margins and growth potential warrant further exploration.
See More
TD Cowen Upgrades Franco-Nevada to Buy with $291 Target
- Rating Upgrade: TD Cowen has upgraded Franco-Nevada from Hold to Buy with a price target of $291, citing that the stock trades near a five-year valuation trough despite its strong balance sheet and robust deal flow.
- Balance Sheet Strength: Franco-Nevada's balance sheet is considered the best positioned in the sector, with approximately $4.1 billion in financial capacity, enabling the company to pursue large-scale deal opportunities without capital restrictions.
- Strong Deal Execution: Over the past 24 months, Franco-Nevada has deployed more than $3.3 billion, with recent transactions skewed towards producing mines, resulting in an estimated addition of about 67,000 gold equivalent ounces to 2026 production.
- Cobre Panama Progress: Although the Cobre Panama restart is largely priced into the stock, the analyst notes that a full restart decision is unlikely until H2 of this year, as the environmental audit is still pending, with minimal economic impact expected from any amendments.
See More
Analyst Rankings in Precious Metals Sector
- Analyst Ranking Summary: The Metals Channel Global Mining Titans Index ranks its components based on averaged analyst opinions from major brokerages, indicating varied market perceptions; while a low rank may suggest poor stock performance, it could also present contrarian opportunities for bullish investors.
- FNV Stock Performance: Currently, FNV is trading up approximately 1.5%, showing relative stability compared to peers like Newmont Corp (NEM) which is up 2.3% and Barrick Mining Corp (B) which is up 3.4%, potentially attracting investor interest for rebound opportunities.
- Market Interpretation Variance: Investors interpret analyst ratings differently, as a low rank does not necessarily indicate poor stock performance; rather, it may provide significant upside potential for contrarian investors, thereby influencing market sentiment and investment decisions.
- Price History Comparison: A three-month price history chart comparing FNV with NEM and B reveals that while FNV remains stable, the divergence in market expectations regarding its future performance may impact investor buying decisions.
See More
Franco-Nevada Declares Quarterly Dividend of $0.44
- Quarterly Dividend Declaration: Franco-Nevada announces a quarterly dividend of $0.44 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 0.74% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable income.
- Payment Schedule: The dividend is payable on June 25, with a record date of June 11 and an ex-dividend date also on June 11, ensuring shareholders receive timely returns.
- Earnings Beat: Franco-Nevada reported a non-GAAP EPS of $1.85, beating expectations by $0.18, while revenue reached $597.3M, exceeding forecasts by $64.53M, showcasing the company's strong performance in gold investments.
See More
Franco-Nevada Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Franco-Nevada reported a Q1 GAAP EPS of $2.43, beating expectations by $0.19, indicating sustained growth in profitability and boosting investor confidence.
- Significant Revenue Growth: The company achieved revenue of $650.7 million, a 76.6% year-over-year increase, surpassing market expectations by $15.42 million, reflecting robust business expansion and strong market demand.
- Stable Sales Guidance: Franco-Nevada remains on track to meet its 2026 GEO sales guidance of 510,000 to 570,000 ounces, excluding potential contributions from Cobre Panamá, demonstrating confidence in future performance.
- Excellent Non-GAAP Results: The Q1 non-GAAP EPS was $1.85, exceeding expectations by $0.18, with revenue of $597.3 million, surpassing forecasts by $64.53 million, further affirming the company's financial health.
See More
