So royalty companies are probably the safest way to invest in miners, because their risk is spread out to many companies, so a mine explosion or worker strike or change in local government or permitting won’t wreck the stock like it would a single mining company.
For this reason, the gold royalty companies move first in an up market, then producers, then developers, and last the explorers. They also don’t crash in down markets.
But Franco Nevada, the biggest royalty company is only 20% off it’s all time high. So if you buy it today, what’s your upside? 20%? Maybe 50% if gold goes to $2500?
GDXJ would triple if gold goes to $2500, and good developers and juniors would be 5-10 baggers. That’s why I don’t buy the big name royalty companies or the big producers (Newmont, Agnico Eagle) etc. lots of people own Franco or Newmont, whereas few people own GDXJ and nobody owns junior miners.