Royal Gold (RGLD) is a unique gold mining company that does not mine any gold. You may see details about RGLD here. In the past 2 days, RGLD got killed by dropping about 30% due to a significant miss of its earnings expectation. But I think this is a huge mistake by selling that much of RGLD and way too much overreaction. RGLD has a large pile of trophy gold assets that generate gold for it at an average cost of $400/oz. In other words, it will continue to sell a lot of gold at much higher prices even in such a depression state for precious metals. Yes, I know RGLD's revenue and incomes will continue to suffer due to the low gold prices but it is still a very profitable company. So, if you still believe gold for its long-term prospects, buying RGLD at this depressed prices around $35 will be a great bargain for long-term investment. It is also paying you increasing dividends by waiting for the eventual recovery of the precious metals. Even if you do not believe gold at all, RGLD is technically very oversold and is due for a strong bounce near term. It is not unthinkable to see it quickly rebound to around $45 soon.
I like RGLD as always either as long-term investment or short-term trading for now.
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