This Is the Best Way to Invest in Gold

Gold is a volatile commodity prone to swift and dramatic price swings, but it often does well when other investment options are souring. Because of this fact, investors often like to have a small amount of gold exposure in their portfolios to increase diversification. If that sounds like a good idea today, then take a closer look at Royal Gold (NASDAQ: RGLD), Franco-Nevada (NYSE: FNV), and Wheaton Precious Metals (NYSE: WPM). They are tied to gold, but aren't miners -- and that's a positive.

Royal Gold likes to point out that it produces a huge amount of revenue with just a tiny staff of 23 people. It generated roughly $18.4 million of revenue per employee in 2019. Compare that to, say, tech giant Alphabet, which makes closer to $1.5 million per employee. How could an $8.4 billion market cap company be so productive? The answer is in the business model -- Royal Gold is a streaming company.

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