Key Takeaways
- Gold royalty companies have outperformed gold miners by 18 percentage points YTD.
- The royalty model eliminates direct exposure to cost inflation, capex overruns, and operational risk.
- Franco-Nevada (FNV.TO), Wheaton (WPM.TO), and Royal Gold (RGLD) are the three largest by market cap.
- Smaller names like Gold Royalty Corp (GROY) and Nomad Royalty offer higher growth but more risk.
When gold prices rise, investors instinctively reach for gold miners companies that dig the metal out of the ground. But the data for 2026 tells a more nuanced story: royalty and streaming companies have delivered better returns with lower volatility, outperforming the GDX (gold miners ETF) by 18 percentage points year-to-date.
The Return Premium
| Name / Ticker | YTD Return | P/NAV | Yield |
|---|---|---|---|
| Gold (spot) | +38.2% | ||
| Franco-Nevada (FNV.TO) | +52.8% | 1.82x | 1.1% |
| Wheaton Precious Metals (WPM.TO) | +51.6% | 1.94x | 1.8% |
| Royal Gold (RGLD) | +44.2% | 1.68x | 1.4% |
| Gold Royalty Corp (GROY) | +61.4% | 2.1x | 0.4% |
| GDX (gold miners ETF) | +33.8% | 0.6% |
Why Royalties Outperform in Bull Markets
The royalty model’s leverage to gold prices is almost entirely on the revenue side, with minimal cost exposure. While gold miners face inflation in labour, diesel, and steel that partially offsets higher gold prices, royalty companies’ cash costs per ounce are essentially fixed by contract. Their operating leverage to the gold price is therefore greater a $100 move in gold translates more directly to the bottom line.