Forget Marijuana Stocks, Here Are 3 Gold Stocks for True Investors

It has been more than 20 years since California, the first state to legalize medical marijuana, made its groundbreaking decision. Now, more than half of U.S. states have legalized its use, and in some places, even recreational use is allowed. By some estimates, marijuana's projected sales will exceed $24 billion by 2025. Undoubtedly, investing in marijuana stocks seems enticing, but be warned: A large market doesn't ensure a related company's profitability.

One of the leading companies focused on marijuana-based treatments, GW Pharmaceuticals (NASDAQ: GWPH), has one cannabinoid drug, Sativex, on the market and one, Epidolex, awaiting FDA approval. Insys Therapeutics (NASDAQ: INSY) doesn't primarily deal in cannabinoids, but it recently received FDA approval for its cannabinoid, Syndros, which the company expects to launch in August. It will take some time, though, before these companies -- and others -- prove that they can bring cannabinoids to market and garner wide enough acceptance among doctors and patients to allow the companies to achieve profitability.

Instead of assuming the high risks associated with these stocks, investors may be better off with a more tried-and-true option -- one whose proven market is thousands of years old: gold. So, let's dig in and look at the best choices for investing in the yellow metal: Royal Gold (NASDAQ: RGLD), Franco-Nevada (NYSE: FNV), and the SPDR Gold Trust ETF (NYSEMKT: GLD).

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Source: Fool.com