The golden opportunity – royalty companies

The central banks have fueled the recent gold price rally, and now Western investors are increasingly returning. But there still seems to be little interest in gold shares. This could be an opportunity for investors. Gold shares will probably only be seen as particularly lucrative investment opportunities when the current gold bull market has reached its peak. Gold mining shares are still cheap, similar to the years 1999 to 2000, when the European central banks acted as sellers. It is not really understandable why investors are (still) less interested in gold mining stocks when gold prices are rising. At the beginning of 2021, investors liquidated gold holdings due to rising real interest rates. At the same time, central banks began to increase their gold reserves. In the third quarter of 2022, the gold price was around 20 percent below its peak price. The gold price then began to rise. And by mid-2024, the price of the precious metal was already more than 70% above the lows of 2022.

Real interest rates have now fallen, but Western investors‘ interest in gold has been on the rise since mid-2024. Silver has fared similarly. Physical silver holdings were liquidated between 2021 and 2024, silver ETF reserves decreased. However, the situation has now also changed for silver ETFs, with many tons of silver being added since May. Today, gold and silver are in high demand, so there has been a turning point. Central banks are still increasing their gold reserves, albeit less aggressively overall. Paper currencies have depreciated in comparison to gold. Investors who want to bet on gold, but also on diversity in a company’s activities, could familiarize themselves with royalty companies. These finance mining companies and receive streams and license fees in return. Large portfolios are held by Gold Royalty or Osisko Gold Royalties, for example. Both focus on North and North and South America respectively.

Osisko Gold Royalties‘ – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ – preliminary revenue from royalties and streams reached a record level in 2024.

Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – is also looking forward to record sales in 2024.

Current corporate information and press releases from Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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