Royal Gold Inc

Royalty and streaming mining companies’ valuation multiples (GOAU) (NUGT) are usually higher than those of their mining peers.

In this series, we’ll look at what could influence gold demand as we step into 2019.

Ray Dalio’s love for gold is well known.

Dalio’s Bridgewater Associates built its position in gold ETFs mainly after the second quarter of 2017.

Royalty and streaming mining companies’ (GOAU) (SIL) multiples are usually higher than those of their mining peers.

While gold miners have been out of favor for a long time, that may be about to change. As uncertainty in the market is increasing, gold prices are poised to rise.

According to the COT report for the week ended August 10, money managers were net short on gold for the eighth straight week.

According to the COT report for the week ended August 3, money managers were net short on gold for the seventh straight week.

Goldcorp (GG) reported its second-quarter earnings on July 25 after the market closed.

According to the COT report for the week ended June 26, 2018, money managers were barely net long on gold with just over 4,000 net speculative long contracts.

Gold prices have gone through a rough patch recently with prices closing near their seven-month lows.

Precious metal prices’ revival in the last week has led to miners rebounding, with most mining companies performing positively.

The revival in precious metals on Friday caused a rebound in miners. But the fall on Monday again caused mining stocks to plummet.

Among growing market unrest, investors have turned to the US dollar rather than gold as a safe haven.

The Global X Silver Miners ETF (SIL) and the VanEck Vectors Gold Miners ETF (GDX) have fallen about 7.6% and 1.8%, respectively, during the last month.

On Thursday, June 28, silver fell 0.3% and was trading at $16.00. Platinum dropped 1.0% and traded at $850.00.

In this article, we’ll focus on the correlations of selected miners with gold.

Most precious metal mining stocks have fallen over the last few months due to falling gold prices.

US ten-year Treasury note yields (IEF) hit a high mark of approximately 3.1% today—a record since July 2011.

Among the four major streaming companies we’ll discuss in this part of our series, Franco-Nevada (FNV) has the highest forward EV-to-EBITDA multiple of 22.8x.

Besides the rise and fall in the US dollar, another crucial factor affecting precious metals price changes is overall market volatility.

RBC Capital Markets has made a case for owning gold and gold stocks (GDX) to hedge against market volatility.

Over the past three years, NGD has seen a declining correlation to gold, while BTG, RGLD, and NEM have seen mixed correlations.

Agnico-Eagle Mines (AEM), Barrick Gold (ABX), Royal Gold (RGLD), and Cia De Minas Buenaventura (BVN) fell 0.36%, 0.52%, 0.73%, and 4.1%, respectively, on May 2.

In this article, we’ll look at the primary technical readings of a select group of miners.

In this part of our series, we’ll look at the correlation between gold and four mining stocks.

While gold miners have been out of favor for a long time, that might be about to change. Since the uncertainty in the market is increasing, gold prices are poised to rise.

Precious metals increased on Monday, April 16, 2018, which was followed by most mining shares.

In this part of our series, we’ll look at the correlation between gold and four mining stocks: Royal Gold (RGLD), Goldcorp (GG), Sibanye Gold (SBGL), and Gold Fields (GFI).

Recently, the unrest in the markets has had a big effect on precious metals and the US dollar.

In this part of the series, we’ll look at the correlation between gold and four select mining stocks.

Gold and silver have seen positive yields over the past five trading days.

Mining stocks’ correlations with gold are crucial because gold is the big brother of precious metals.

On Wednesday, March 14, 2018, precious metals fell, but miners had a mix of ups and downs.

Precious metal miners had a reasonably good start to 2018.

The RSI (relative strength index) of the gold-silver spread was 54.9 on February 23.

Among the core indicators playing precious metal prices is the rise in US inflation, which is currently at 2.2%—almost at growth of 1% compared to the start of 2016.

Agnico-Eagle Mines and Randgold Resources have seen their correlation with gold drop in the past three years.

Royalty and streaming companies Royalty and streaming companies’ business model differs greatly from that of other precious metal miners (RING), mainly because royalty and streaming companies do not own mines. These companies make upfront payments to gain a right to a fixed percentage of future silver or gold mine production. Additional payments are then made […]

Performance-wise, the VanEck Vectors Gold Miners ETF (GDX) and the SPDR Gold Shares ETF (GLD) have diverged this year.

What the markets have long been fearing has finally come true, at least in part. The S&P 500 (SPY) (SPX) hit a record high on January 26, 2018. Since then, the index has fallen ~8% as of February 6, 2018.

Gold and silver had a great start to 2018, and they have risen about 3.5% and 1.9%, respectively, year-to-date.

Commitment of Traders report The CFTC (Commodity Futures Trading Commission) releases the Commitment of Traders (or COT) report every Friday. It presents a breakdown of the open interest positions of all major contracts in the futures market up until the Tuesday prior. It has four main categories of traders: producers swap dealers money managers other reportables […]

Equity markets It’s no secret that US equity markets (SPY) (SPX) seemingly hit higher highs every other day in 2017. The S&P 500 rose 19.4%, reaching record highs. Therefore, it comes as no surprise that market participants are worried about valuation getting stretched. While higher valuation doesn’t automatically mean assets are overvalued, the perception of […]

Gold started 2018 on a strong note, in line with the new-year price rallies it has seen over the last few years.

In this article, we’ll do a technical analysis of a few select mining stocks. When investing in mining stocks, it’s crucial to read their indicators.

Most mining stocks have risen during the past month due to the revival in precious metals prices.

Precious metals, especially gold, reported good returns for 2017. However, the year was a roller coaster ride due to global and political unrest.

Precious metal mining companies have witnessed a rebound in their prices alongside precious metals.

Gold is the most influential precious metal, and most miners follow its price trends.

Precious metal mining companies have witnessed a rebound in their prices alongside precious metals.

Among these spreads, the gold-silver spread is the most talked about because it measures the number of silver ounces it takes to buy a single ounce of gold.

While gold might benefit briefly from the new year rally, a large portion of the remaining performance will depend on the outlook for the US dollar.

Analysts are calling for average revenues of $678.5 million for 2017 for Franco-Nevada (FNV).

Due to its solid performance YTD (year-to-date) and bright outlook, Royal Gold (RGLD) is attracting a lot of interest from the analyst community.

The returns for royalty and streaming companies in 2017 have surpassed the actual miners (GDX) by a huge margin.

The performance of gold and silver in 2017 is weaker than most other industrial metals. There are many factors that explain the weaker performance of precious metals.

RGLD is being covered by 13 Wall Street analysts right now, of which 54% recommend a “buy” for the stock, while 46% recommend a “hold.”

Gold prices remain under pressure as the demand for alternative investments, including equity stocks and bitcoin, remain strong in the risk-on environment.

Precious metals and miners saw some relief on December 13 after the Fed raised rates as expected. Sibanye Gold (SBGL), Aurico Gold (AUQ), and Goldcorp (GG) rose 3.5%, 3.6%, and 5.8%, respectively.

The Global X Silver Miners ETF (SIL) and the Sprott Gold Miners (SGDM) have fallen 3.5% and 4.4%, respectively, on a 30-day trailing basis.

Among the four miners we’re covering, Goldcorp and Barrick have YTD (year-to-date) losses of 12.9% and 14.6%, respectively.

In this part of our series, we’ll look at the technical indicators for mining stocks. We’ll discuss the call-implied volatility and RSI (relative strength index).

Often, gold, silver, platinum, and palladium react to the overall risk in the market.

Royalty and streaming mining companies (RING) (SIL) have business models that are considered quite conservative because they don’t own mines.

While geopolitical tensions, low US inflation, and uncertain policy reforms have been supporting gold, the other key factors have been working against it.

RGLD, NEM, GFI, and BVN have call implied volatilities of 24.8%, 25.9%, 40.4%, and 35.3%, respectively. The volatility in these stocks is often much higher than the volatility in precious metals.

Barrick Gold has seen a declining trend in its correlation to gold over the past three years, while the other three miners witnessed a mixed trend in correlation.

RGLD, GG, SBGL, and GOLD reported RSI levels of 52.5, 62.7, 49.2, and 81.4, respectively.

In September 2017, palladium prices overtook the price of platinum.

Precious metals rose on Tuesday after their impactful retreat on Monday. The market was eagerly waiting for the Federal Reserve minutes due on Wednesday.

Correlation analysis Mining stocks’ performance usually depends on precious metal prices. Correlation analysis can give investors some perspective on how mining stocks relate to precious metals, especially gold. In this part of our series, we’ll look at four miners—Royal Gold (RGLD), Goldcorp (GG), Franco-Nevada (FNV), and Randgold Resources (GOLD)—and their correlation with gold. On Monday, the ETFS Physical […]

For India, gold imports have fallen 16% in value to ~$2.9 billion in October 2017 compared to $3.5 billion in the corresponding month last year.

New Gold and Goldcorp have seen upward trends in their correlations with gold, while Newmont Mining has seen its correlation decline.

Gold futures for December delivery were down yesterday, touching the day’s low of $1,269.7 per ounce and ending the day at $1,282.9 per ounce.

If we look beyond the dollar influence on precious metals, we can analyze how the probability of an interest rate hike could influence precious metals and their miners.

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Junior Gold Miners (GDXJ) have seen YTD (year-to-date) gains of 6.4% and 9%, respectively.

The past week has been beneficial for precious metals—gold, silver, platinum, and palladium rose 0.42%, 1.5%, 0.63%, and 1.5%, respectively.

First Majestic Silver and Yamana Gold have seen a YTD loss of 11.1% and 5%, respectively. Royal Gold and Agnico have seen a YTD gain of 40.6% and 7.2%.

While China and Russia have the fifth and sixth largest gold reserves globally, the movements in them are the most watched by gold investors the world over mainly because these economies have been quite vocal about adding gold reserves.

The VanEck Vectors Junior Gold Miners (GDXJ) and the iShares MSCI Global Gold Min (RING) witnessed a fall in their price on Friday.

Thursday, November 2, 2017, was an up day for gold, but silver, platinum, and palladium continued to fall.

Mining stocks’ correlation with precious metals Most of the time, mining stocks’ performance follows that of precious metals. However, they can deviate. Correlational analysis can give investors some insight into how mining stocks relate to gold and silver. In this part of our series, we’ll compare Royal Gold (RGLD), Goldcorp (GG), New Gold (NGD), and Newmont Mining (NEM). Mining […]

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Junior Gold Miners (GDXJ) fell 2.6% and 1.5%, respectively, on October 26.

On October 26, 2017, Royal Gold, Newmont, Sibanye, and Yamana had call implied volatilities of 24.8%, 25.9%, 63%, and 48.4%, respectively.

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Gold Miners (GDX) have fallen 1.3% and 1.4%, respectively, on a five-day-trailing basis.

Gold, silver, and platinum have fallen 1.7% apiece during the past five trading days, while palladium has fallen 2.7%.

The overall geopolitical environment also had a significant effect on precious metals over the past few months.

Understanding mining stocks’ correlation with gold is crucial for investors in precious metal mining stocks.

The North American gold miners’ results season is slated to begin on October 25. In this series, we’ll see how analysts view their revenues, earnings, and free cash flows.

On a YTD (year-to-date) basis, RGLD, AEM, and FNV have risen 38.3%, 7.3%, and 33.3%, respectively, while Goldcorp has seen a YTD loss of 3.4%.

Most precious metals had a down day on Tuesday, October 10, despite the recent overall upward movement in precious metals.

Mining shares had a mixed pattern in their price reactions on Wednesday, October 11, 2017.

All the four precious metals saw an up day on Monday, October 9, 2017.

Credit Suisse (CS) downgraded Franco-Nevada (FNV) from “outperform”’ to “neutral” on September 25, 2017.

Among these four mining stocks, Goldcorp has the lowest correlation with gold on a YTD basis, while Royal Gold (RGLD) has the highest correlation.

Copper is falling for the fourth trading day this week. At 7:53 AM EST, the COMEX copper futures contract for July delivery was trading at $2.16 per pound.

Goldcorp (GG) and Newmont Mining (NEM) have dropped 4.2% and 6.2%, respectively, over the last month.

Wheaton Precious Metals trades at a forward EV-to-EBITDA multiple of 16.6x, which is a discount of 19% to the sector average multiple.

Gold rose on Wednesday, October 4, 2017, after having touched its seven-week low price of $1,269.2 an ounce.