If there’s one thing that’s apparent, it’s that uncertainty is on the minds of most politicians and pundits nowadays. Regardless of where one stands politically, it’s fair to say we’re in uncharted waters, which for many investors means renewed interest in gold.

Oftentimes, the initial reaction is to turn toward mining stocks. However, these companies don’t react as strongly — for a variety of reasons — when bullion’s price tag rises. The better choice resides with royalty and streaming companies, but where does the best opportunity lie? Let’s take a look at some of the leaders in the space: Royal Gold (NASDAQ:RGLD), Franco-Nevada (NYSE:FNV), and Wheaton Precious Metals (NYSE:WPM).

Which kind of company to choose?

Undoubtedly, the best investors are well-informed investors, so it’s worth learning (or reviewing) the difference between royalty and streaming companies and gold-mining companies. Royalties provide companies with the ability to collect a percentage of mineral production from mining operations. Streams, on the other hand allow them — for an upfront payment — to purchase all or a portion of one or more the precious metals produced from a mine for a set term at a price that is typically well below current spot prices.

These companies are great opportunities for gold bulls in that they bear fewer of the risks associated with gold-mining operations: compliance with environmental and health regulations, permitting requirements, capital costs of operating projects, and the construction of new projects (and this is far from an exhaustive list).

Read the full story at The Motley Fool.