Royal Gold Inc

At 2:50 PM EDT on July 22, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) gained ~1%, ~2.0% ,and ~0.77%, respectively.

Polyus Gold International is the largest gold producer in Russia. It ranks among the top ten gold miners. It produced 1,696,000 ounces of gold in 2014.

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.

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.

Gold and interest rates have a close inverse relationship. The higher the rate for Treasuries, the lower the demand for non-yield-bearing assets such as gold and silver.

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 […]

Central banks have been net buyers of gold since the beginning of the financial crisis of 2008.

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

These economic concerns and monetary stimulus expectations have decreased the probability of an interest rate hike by the US Federal Reserve, and the chances of an interest rate hike in July dropped to zero.

On May 31, 2017, the implied volatilities of Royal Gold, Goldcorp, Agnico Eagle Mines, and Primero Mining stood at 26.5%, 30.7%, 32.1%, and 90.6%.

Most mining companies are trading below their 100-day moving averages. A few months ago, they were trading at discounts compared to their significant premiums.

Precious metals mining shares that have high correlations with gold include Royal Gold, GoldCorp, New Gold, and Newmont Mining.

For mining companies, 2016 brought a ray of hope. Gold had the best quarterly performance in 30 years and silver climbed to its 11-month high.

Copper is trading lower on Thursday. At 6:36 AM EST, the COMEX copper futures contract for July delivery was trading at $2.06—a decline of 1.1%.

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

At 8:45 AM Eastern time, gold futures contracts for June delivery were trading at $1,298.75 per ounce, a gain of 0.23%. Silver was trading at $17.59 per ounce, a loss of 0.37%.

Precious metals often run in the opposite direction of stocks. Whenever the risk appetite of investors is high, stocks tend to perform well.

At 2:40 PM EST on August 8, the COMEX gold futures contract for December delivery was trading at $1,341.35 per ounce—a drop of ~0.23%.

At 6:35 AM EST on October 7, the COMEX copper futures contract for December delivery was trading at $2.15 per pound—a fall of ~0.12%.

As global tumult grips markets—and as investors turn to mining stocks as safe havens—it’s crucial to understand which stocks are closely tied to precious metals.

The market is anticipating the speech by the Federal Reserve chair, Janet Yellen, at the annual central bankers meeting to be held in Jackson Hole, Wyoming, on August 26.

Mining companies saw massive YTD rises in 2016 despite their poor performances in the last quarter. GDX saw a YTD rise of 21.4%.

Factors impacting gold in 1H17 are a weaker US dollar, geopolitical uncertainties, higher interest rates, and expectations for Trump’s agenda.

As global tumult grips markets and investors turn to mining stocks as safe havens, it’s crucial to understand which stocks are closely tied to precious metals.

Despite the losses on February 26, the precious metals maintained substantial gains for February. Gold had the best month in almost four years.

China’s better-than-expected growth in real estate investments in April supported copper prices on Monday.

OPGSX may also invest up to one-fifth of its portfolio directly into gold or silver bullion and other precious metals.

Vanguard Precious Metal and Mining Investment Fund (VGPMX) lags in diversification, as it’s a pure sector fund.

The business model of royalty/streaming companies is quite different from that of other precious metal miners.

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.

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.

After falling for two consecutive trading days, gold regained its strength on Wednesday, June 29, amid increasing concerns over the stability of the global markets.

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 miners in 2017 seem to be driven more by company-specific factors than by the direction of gold prices.

Copper prices stabilized on Monday, July 4, amid expectations of stimulus from central banks.

Among the precious metals sub-groups, royalty and streaming companies have substantially underperformed the other miners.

COMEX-traded June gold futures fell marginally by 0.50% and closed at $1,183 per ounce on May 11. Gold prices traded almost flat—led by weak Asian demand.

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

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

The business models of royalty and streaming companies is quite different from those of other precious metals miners. Royalty companies don’t own mines.

At 6:40 AM EST on July 5, the COMEX Copper futures contract for September delivery was trading at $2.2 per pound—a drop of 0.81%.

June gold futures trading on COMEX increased slightly by 0.01% on May 15, 2015, and settled at $1,225.30 per ounce. Gold prices rose for the fourth day.

It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.

Due to leverage, the performance of gold miners usually magnifies the direction of the gold prices, but the scenario in 2017 has been slightly different.

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

Royalty and streaming companies are quite different than other precious metal miners in terms of business model.

The OPGSX fund aims to grow capital through exposure to equity stocks of companies that are associated with gold and other precious metals.

Among the precious metals sub-groups, royalty and streaming companies have substantially underperformed the other miners. Why is that?

Lower gold prices impact gold mining stocks. The US Dollar Index appreciated against the major currencies and increased by 0.06% on May 7, 2015.

Gold June futures contracts trading in COMEX rose by 0.54% and settled at $1,193.20 per ounce on May 5. Prices gained as the US Dollar Index depreciated.

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.

June gold futures contracts increased marginally by 0.19% and closed at $1,188.80 per ounce on May 28, 2015. Gold prices increased marginally.

This is the fifth up day for gold prices in the last ten days. Prices increased by 0.72% more on the average up days than on the average down days over the last ten trading sessions.

The First Eagle Gold Fund Class ­A’s (SGGDX) portfolio mainly consists of stocks from the precious metals and mining sector.

During the past week, average hourly earnings, excluding the farming industry, were below analysts’ expectation of 0.10%.

Newmont Mining (NEM) is one of the leading gold miners. It contributes about 5.43% to the VanEck Vectors Gold Miners ETF (GDX).

Gold had seen a prolonged bull run from the 2008 meltdown to the beginning of 2013 as fear, the expectation of inflation, and QE drove prices higher.

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

Royalty and streaming companies don’t own mines. They make an upfront payment in return for a purchase of a fixed percentage.

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.

Royal Gold, Agnico-Eagle, Silver Wheaton, and Hecla Mining now have RSI scores of 38.1, 25.1, 24.6, and 40.6, respectively.

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.

The US jobs report showed 156,000 job additions in December 2016. This number was below the consensus estimate of 175,000 job additions.

Many of the recent fluctuations in precious metals have been the result of speculation about the Federal Reserve’s interest rate stance.

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

At 6:30 AM EST on July 26, the COMEX copper futures contract for September delivery was trading at $2.21 per pound—a drop of ~0.45%.

Copper is trading positive on Friday morning. At 7:21 AM EST, the COMEX copper futures contract for July expiry was trading at $2.08 per pound.

Though an increase in rates may initially dim the luster of the metal, after the hike, gold may soar, uninterrupted by looming fears.

US employers boosted hiring in November, and the unemployment rate fell to a nine-year low of 4.6%.

Gold and the US dollar have witnessed an almost inverse relationship over the past few years. The other precious metals have a similar inverse relationship to the US dollar.

Russia and China have been vocal about adding gold reserves to cut their economies’ dependence on the US dollar.

Iamgold’s (IAG) stock price has had a very strong performance in 2017 YTD, significantly outperforming peers and gaining 83% as of September 8, 2017.

US economic data that came out on Friday, July 8, 2016, had a significant impact on gold.

Most mining companies reversed their 2015 losses during the first few months of 2016 and had posted substantial gains. There is a high correlation between mining stocks and precious metals.

Some investors expected choppy markets for precious metal mining companies after Trump’s victory, but that didn’t happen. Miners often follow precious metals.

During November, after the presidential election, gold’s gains were mainly due to the strong US dollar. The US Dollar Index rose to a 14-year high.

After gaining for two consecutive trading days, gold prices inched higher on Wednesday, September 21. This gain occurred against the backdrop of the Federal Reserve meeting and the marginally lower dollar.

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

The VanEck Vectors Gold Miners (GDX) is trading at a YTD gain of 12.3%. But during the past month, many miners had previously experienced price falls.

First Majestic Silver (AG) has a three-year correlation of ~0.71 with gold and a year-to-date correlation of ~0.64.

In precious metals, gold and silver look stable this morning. At 6:19 AM EST, gold for June delivery was trading at $1,234.05 per ounce—a gain of 0.33%.

On September 15, the COMEX gold futures contract for December delivery fell 0.09% to $1,320.25 per ounce.

The US added 138,000 jobs in May 2017, after adding 174,000 jobs in April (revised downward from 211,000 previously).

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

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.

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.

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.