The Unstoppable, Over-Valued Golden Beast

FNV continues to rally (and lead)

Franco Nevada does not mine gold. It holds royalties on the gold that Huey (above) digs and wheels out of the bowels of the earth with nothing but a pick, a wooden cart and sheer determination. It is also somewhat (but not heavily) diversified into more cyclical assets than gold.

FNV, like most of its Royalty bros is richly valued due to the lower risk it incurs relative to Huey, who takes life, limb and political risk as facts of mining life. Franco Nevada was added by your letter writer/blogger on the tank job below the bottom channel line. Ref. Franco Nevada Would Lead Them.

The only reason I have not yet traded it out in favor of something more reasonably priced is that the profit is taxable. Yet I am still considering it. Just trying to be measured.

While there are reasons to project the gold stock rebound as ill-fated, there are others that beg to differ. FNV’s leadership is and has been that second thing, now on its 4th day above the SMA 200. I am keeping an open mind and considering the incoming data each week.

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