I have said Royal Gold Inc (RGLD) is the best gold company, period. It does not mine a single ounce of gold but it receives tons of money from other gold mining companies via royalties.
Almost one year ago in Oct 2011, I talked about shorting RGLD as a short-term speculation as it jumped up too high too soon. But I thought it was a good buy when it reached around $60 or below. Sure enough, RGLD has significantly outperformed not only its peers (i.e. other gold stocks), but also gold itself in the past year. When almost everyone in the gold sector is struggling, RGLD is a sole flower blossoming in its full capacity! See the chart below [RGLD (green), GLD (blue) for gold and GDX (red) for gold stocks in ETFs].
I put my money where my mouth is. Below is my current open position for RGLD in one account. It is a combo of long call options and naked put selling to boost the profit. But simply buying RGLD shares will be doing just fine long term and you can also earn its dividend. I said a few days ago that it will be good opportunity to buy gold and gold stocks at their pull back. I'm planning to do so to add more into them.
 | RGLD Jan 18 '14 $60 Call 33.80 5.70 20.28% $380.00* 2 $19.90 $2,773.23 69.56% $6,760.00 |
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| | RGLD Jan 18 '14 $70 Put 6.00 0.00 0.00% $-0.00 -10 $12.50 $6,483.90 51.80% -$6,000.00 dit
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