Royal Gold - A gold company never mining gold

Royal Gold (RGLD) is a precious metals company with royalty claims on gold, silver, copper, lead and zinc at mines in over 20 countries. It is the best gold company with no mining risks whatsoever. Why so? You see, RGLD is not a traditional gold company engaged in exploring and producing gold; rather it is simply collecting gold at extremely low prices. How could that happen? Well, what RGLD does is to finance the early stage small gold mining companies when they desperately need money and in return, instead of simply collecting fixed interests on the money lent out,  RGLD will get certain percentage of gold at a much lower price than the market price when the company starts to produce gold. And RGLD shares none of any political, economic and operational risks any mining companies must face. Right now in its portfolio, RGLD has got 36 mining properties producing gold already and additional huge line up of other companies still working towards gold production. Since RGLD collects more and more cheap gold and sell at much higher market prices, it has become a hugely profitable gold company. At a market cap of over $3 Billion, tell me how many employees you think RGLD should have?  21 people for the whole company!

Right now, RGLD is paying 1.9% dividend but since you can bet that it will get more and more gold moving forward, its dividend will be going up substantially in the future. In the past 5 years, it dividend growth rate has been around 25% and I think it will be more in the future. RGLD is definitely one of those companies I absolutely must have for my retirement portfolio. I don't care if its share price may fluctuate or not. I know holding Royal Gold is just holding a gold mine, from which you can collect more and more golden eggs.

Gold is struggling at the moment and RGLD has plunged 60% along with it. It is now at a much reasonable price.  I think it is a great time to accumulate  RGLD shares. You will regret 10 years from now if you don't act now.