Gold has dominated market headlines this year, breaking above the US$4,000 per-ounce mark for the first time in history. Although prices recently pulled back sharply, it’s likely too early to call an end to the rally. The fundamental drivers behind gold’s strength — including central bank buying, global economic uncertainty, tariff tensions, and expectations of lower U.S. interest rates — remain firmly in place.
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That said, investors should brace for potential volatility. A short- to medium-term correction toward the US$3,800–$4,000 range wouldn’t be surprising. Still, several major banks see gold climbing to as high as US$4,900 or even US$5,000 by 2026 — a reminder of the long-term upside potential.
Recent weakness has been especially painful for gold mining stocks, which can swing more sharply than the metal itself. In some cases, miners dropped 10% in a single session. This volatility highlights the leverage — and risk — that comes with owning mining companies. While mining stocks can outperform when gold is rising, they can also magnify losses when the metal dips.
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For investors seeking exposure to precious metals with less turbulence, gold streaming companies offer a more balanced alternative. Franco-Nevada Corp. (TSX:FNV) stands out as a prime example. Although FNV shares have fallen roughly 14% from their highs, the company’s diversified streaming model and lower beta (0.59 versus roughly 1.0 for typical miners) make it a steadier option.
Franco-Nevada benefits from predictable, low-cost production streams and strong cash flows that support a sustainable — and growing — dividend. With its resilient business model and leverage to rising metal prices, Franco-Nevada provides a compelling, lower-risk way for investors to participate in the ongoing gold and silver boom without enduring the stomach-churning volatility of traditional miners.
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