Gold royalty companies sparkle
posted on
Dec 29, 2008 04:41AM
Royal Gold(RGLD-OTC) and Franco-Nevada(FNV-TSX) which hold gold royalties are some of the best performing stocks in the in the market these days, including the gold stock related sector. Royal Gold made an all-time high last Friday while Franco-Nevada is only off 20% or so as compared to many of the big gold producers which are generally off about 40% from their high points this year.
Alf Field in his kitco.com article earlier this month describes gold's poterntial to be $10,000 an ounce with some earlier stops at $3,500 and $6,000. Dr. Palmer is expecting revenue flow from the Goldex mine to begin within the next 2 to 3 years. Agnico-Eagle our partner will drill our royalty section like swiss cheese when it gets there as it is already on the hunt nearing the location according to Dave.
Don't forget, we have more exposure to higher gold prices with our properties southwest of Timmins. Hopefully, Dave is working on securing some additional gold properties with potential in preparation for the upcoming big move in gold. This would be a happy change for shareholders as the collapse in copper prices from above $4 US to about $1.30 basically gave all base metal explorers the beatings of their life.
I believe the time is right in redirecting some of our attention away from the ROF towards gold while the price remains undervalued based on Alf Field's price projections.
Gold reached $892 in last night's Asian trading but is currently experiencing price suppression by the cartel paper pushers on the Comex with a last sale of $875.
Go gold! Go Probe!