Royal Gold (RGLD) - Largest public Gold royalty co.
Rising Cash costs are not their problem
=============================

$34.45 x 30,069,673 shs = $ 1,035,900,235 MktCap (Jan.2008)

Charts ... Daily : Weekly : Monthly


(My largest holding - just took off my hedges, selling puts at a profit)

I like to look at RGLD's price as a ratio to Gold (GLD):


RGLD SUMMARY

Year- ended June-- : - 2003- : -2004- : -2005- : -2006- : -2007-

Average Gold price. : $ 334. : $ 389. : $ 423. : $ 525. : $ 638.
Earnings per share.. : $ 0.34 : $ 0.43 : $ 0.55 : $ 0.50 : $ 0.79
Earns. fully dlluted.. : $ 0.33 : $ 0.42 : $ 0.54 : $ 0.49 : $ 0.79
Dividends per share : $ 0.10 : $ 0.15 : $ 0.20 : $ 0.22 : $ 0.26
Ratio: EPS.fd/ Gold.. : 1012.1 : 926.2 : 783.3 : 1071.4 : 807.6

Qtr.- ended -------- : 12/06- : 03/07- : 06/07- : 09/07- : 12/07- : 03/08-

Average Gold price : $ 613. : $ 650. : $ 668. : $ 782. : $ 787. : $ 906E
Earnings per share.. : $ 0.24 : $ 0.14 : $ 0.20 : $ 0.20 : $ 0.13 : $ 0.20E
Dividends per share : $ 0.06 : $ 0.07 : $ 0.07 : $ 0.07 : $ 0.07 : $0.07
Ratio: Gold/4xEPS.. : 638.5 : 1160.7 : 835.0 : 977.5 : 1513.5 : 1130E

The quarters ended: 3/07 and 12/07... were particularly disappointing

= = = = =
LINKS:
Company website... : http://www.royalgold.com/
Yahoo profile.......... : http://finance.yahoo.com/q?s=rgld
Stockhouse B'board : http://www.stockhouse.com/bullboards/forum...&table=LIST
StockRoar comment : http://www.stockroar.com/2007/10/28/update...-rgld-vsea-ice/

Why invest in a Royalty Company? Here are some good reasons:

"Still looking for a good way to strike gold while investing in it? As gold moves solidly above $700 an ounce amid turbulence in the credit markets and on the back of a weak dollar, you don’t have to be a dyed-in-the-wool goldbug to see some merit in investing in the precious metal.
ADVERTISEMENT


An efficient way to do so would be with shares of Royal Gold Inc. (Nasdaq: RGLD), which bills itself as the world’s leading publicly traded precious metals royalty company. It’s an unusual company with an unusual business strategy. How many companies can you name that have a market cap of $875 million with only $48 million in annual revenue and 14 employees?

Royal Gold’s revenue consists of royalty payments based on its interests in mines operated by the world’s leading gold mining companies, making it a relatively pure play on gold. As the company puts it, its sliding-scale royalties provide investors with upside leverage when gold prices rise, as they are now, while providing a floor when gold prices fall.

Currently, the company—which traditionally has been based on a single mining complex in Nevada—faces the happy prospect of gold reaching a new 26-year high just as the company’s recent diversification in other mining projects is beginning to pay off with these mines coming on stream.

Denver-based Royal Gold more or less stumbled into the royalty business after the company, founded in 1981 as Royal Resources, abandoned oil and gas early on to become a gold mining company. The stock market crash of 1987, though, put a stop to that idea and the company realized it could invest in projects operated by others with much less risk. If a site doesn’t pan out, so to speak, Royal Gold still loses, but doesn’t have to worry about permit delays, rising operating costs or the myriad other factors that cut into an operating company’s margins when it does strike paydirt. Instead, it can sit back and wait until the mine starts pouring gold and then collect its royalty on the sale of it.

As a result, Royal Gold’s operating cash flow margin is 50%, compared with 19% for North American majors like Barrick Gold Corp. (NYSE: ABX), Newmont Mining Corp. (NYSE: NEM) and Goldcorp Inc. (NYSE: GG). Royal Gold’s net profit margin is 41%, compared with 11% for the majors.

Moreover, as the operating company seeks to maximize its return on a site, Royal Gold benefits from the additional reserves found through further exploration without having to contribute more capital. For instance, the Cortez mine in the Pipeline mining complex in Nevada began with reserves of 300,000 ounces in 1995, but had 2.3 million ounces of reserves at the end of 2006, even after production of 8.2 million ounces, because of new discoveries totaling 10.2 million ounces.

Royal Gold still derives 80% of its revenue from mines in Nevada, but that is due to change after its diversification into development sites in Mexico, Argentina, Chile and Burkina Faso in West Africa. The Taparko mine in Burkina Faso began pouring gold in July; Royal Gold hopes to begin seeing revenue from the project in the coming quarters. The Penasquito project in Mexico, which Royal Gold believes will be a major producer for two decades, is due to come on stream in the second half of calendar 2008.

In addition, Royal Gold is in the process of acquiring Battle Mountain, a smaller royalty company, which has four producing royalties and one development property, including the promising Dolores mine in Mexico, which is due to commence production early in calendar 2008."

/see: http://biz.yahoo.com/seekingalpha/070916/47192_id.html?.v=1

Funny… I printed the same chart RGLD/GLD this morning further to our conversation of yesterday.
You have a strong case…. It sure looks like a buying opportunity.

Let see how it will open tomorrow. I'll probably follow !

Alex

If gold slides from here, it could drag RGLD lower. But not necessarily.

I do think there were three temporary reasons for the recent selloff in RGLD:

+ Battle Mountain Gold Exploration (BMGX) shareholders, only received their RGLD shares in the past few days,
and some will have sold them immediately

+ Earnings of 20 cents were below expectations (22-23 cents)

+ RGLD announced a $100million + issue of convertibles, bringing some dillution

= =

For earnings, what is an important driver is the average gold price over each quarter.
For the quarter ended 30 Sept. 2007, the average gold price was about $675 - today it is $822.
Based on that rise, and would should (eventually!) be an anti-dillutive merger with BMGX,
I reckon the share price should be rising.

I have been trading in and out of RGLD since June 2007 and have done OK.

Agree with all the comments here - also check out the short position on RGLD - lots of potential for a short squeeze
on the next run up.

I wonder if the short position will partly evaporate when all the RGLD shares are handed out.
A client and I are still awaiting 1.6 million of out BMGX shaes (acquired thru exercise of BMGX wts) to be converted
into free-trading RGLD. I wonder how many others are in the same boat now?

Very interesting point - I will find it quite instructive to see how this plays out - something else to add to the do
list

John Doody talks (on Financial Sense) about how he has added RGLD to his BUY list

+ The share price fell by about 30% (in terms of MarketCap per ounce?)
+ The made a company-changing acquisition (BMGX)

Listen here: http://www.financialsense.com/Experts/roun.../2007/1123.html (about 45 minutes in)

whats the total summary of Royal Gold`s Au reserves from all projects?

weak day for RGLD

$ 29.39 -1.92 // -6.13%
High: 31.60 Low: 29.39 Volume: 784,300

Is the consensus for the investors (ie not traders) to buy under USD30 and hold?

Arn

You may have to update the title of this thread as the new Franco Nevada just might be largest royalty co

Under 30 now. Step in or will it go lower?

SOME NEWS ....

1/
Royal Gold Announces Impact From Goldcorp's Expansion Plans at the Penasquito Project

December 05, 2007: 01:43 PM EST

DENVER, Dec. 5 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. , the leading precious metals royalty company, today announced that Goldcorp Inc. ("Goldcorp"), the operator of the Penasquito project located in Zacatecas, Mexico, has approved plans to expand mill throughput by 30% to 143,000 tons (130,000 tonnes) of ore and to accelerate the construction schedule at the project. According to Goldcorp, the expanded operation is now expected to produce an average of 1.7 million gold equivalent ounces per year, compared to a previous estimate of 1.3 million gold equivalent ounces per year.(1) Royal Gold holds a 2.0% net smelter return royalty on all metals at the Penasquito project.

Goldcorp estimates the average annual life-of-mine production to be 400,000 ounces of gold, 31 million ounces of silver, 417 million pounds of zinc and 214 million pounds of lead. Goldcorp's June 2006 feasibility study had previously estimated annual production levels of 388,000 ounces of gold, 23 million ounces of silver, 302 million pounds of zinc, and 157 million pounds of lead.

"Since the acquisition of our royalty interest at the Penasquito project one year ago, reserves have increased 48%(2), the planned annual production has increased 30%, and the mine life has been extended to 19 years," commented Tony Jensen, President and Chief Executive Officer. "This is exactly the type of project upside we target for acquisitions. These operational improvements will increase and accelerate our royalty revenues and significantly enhance our return on this investment."

Goldcorp also reported that the project remains on schedule and is expected to produce gold from heap leaching of oxides in 2008 with mill start-up in 2009. In addition, Goldcorp reports exploration drilling, metallurgical evaluations and optimization efforts are continuing to provide further project enhancements. As a royalty owner, Royal Gold is not required to contribute to any capital, development, exploration or mine operation costs for the project.
/see: http://money.cnn.com/news/newsfeeds/articl...005122007-1.htm

2/
Out of the Gate: Royal Gold Moves Up
By Associated Press December 18, 2007

Recommendations
Shares of Royal Gold Inc. rose Tuesday after an HSBC analyst upgraded the stock because of greater production from a metals project in which Royal Gold holds an interest. (Minefinders' Dolores mine?)

Victor Flores raised his rating on the company, which buys the rights to collect royalties from mine operators, to "Overweight" from "Neutral." He retained a price target of $34 per share and said the stock price has been weak recently.

Shares rose $1.56, or 5.8 percent, to $28.25 in morning trading.

Royal Gold receives royalties on Goldcorp Inc.'s Penasquito project in Zacatecas, Mexico. Earlier this month, Goldcorp said it will increase mill production to 1.7 million gold equivalent ounces per year, from 1.3 million.

Goldcorp also said annual gold production from the Penasquito mine is higher than it previously estimated.

Analyst Michael Jalonen of Merrill Lynch rates Royal Gold shares at "Buy," while Brian Christie of National Bank Financial gives a rating of "Sector Perform," or "Neutral."

Another interesting Royalty co (very small cap), that you may already be familiar with is Intl Royalty Corp (AMEX:ROY) It's a fairly new listing, but was at a GIP recently (mid dec) and the trend looks to be continuing. It is half a point above strong support, and well under any resistance levels. Increasing volume on a stock with what seems to me to be good financials... Could this be a buy?

Also trades as: IRC.t in Canada

I know it. I own it, bought back in very recently.

Has major investments in the Voiseys Bay royalty,
which is tied to Nickel prices (see chart) and so IRC.t ... update


...is less gold-oriented than RGLD. I want the Gold exposure.

Updated monthly chart for RGLD:

WHEN IT BREAKS above $35 (next week, maybe?)

then RGLD will really fly.
No overhead reisistance to slow it down

= =

Later: Friday was a great day for RGLD !

RGLD $ 34.45 +$1.38 / + 4.17% !!

I mentioned this many times as my largest position.
I hope some of you bought some.
The real fun will start if/when it breaks out over $35. coming soon, I think

$34.45 x 30,069,673 shs = $ 1,035,900,235 MktCap

...but Monday -1.07 (3.11%).......with $900 gold.

maybe best to wait for the pull back in gold now.

Nothing goes straight up.
I lightened a tad (<10%) near $35, but I want to stick with RGLD for the longer haul.

IRC.t (see above) has been a nice winner - hope you got some near the low we identified

No, I lost all my money following your other tips.

Royal Gold (RGLD) looks way too cheap relative to the price of Gold



Some in-the-money calls for March 2008 or later may reward nicely

??
So many of the ideas here have made big money, and my own portfolio has done well.
Praytell, what have you bought, and over what timeframe that has done badly??

No everything has made money, nor can you expect it too, but handling trades and timeframes
is key, so maybe that is what you need to learn. BTW, taking some profits - when they are on offer-
is part of the exercise.

So I am very curious what has not worked out for you. Maybe we can all learn soemthing from that.

Hey, chill out Bubbs, it was a flippant line.

The recent selloff in Gold stocks has sent the RGLD price back down ... update : 5 yrs : Daily

5 years

Daily- 1year


Another buying opportunity here, near $28?

Well one of the directors flogging 102,000 shares isn't exactly going to help support the price.

I have been nibbling though. I noticed that there are Jan 2009 and Jan 2010 LEAPs quoted for RGLD and although the spreads aren't good and the volume almost non-existent, the premiums (premia?) aren't too bad. With a sensible in-the-money strike price, owning the 2010 calls feels to me like owning the shares but with roughly 2 x leverage. Don't get the dividend yield though.

I didnt see that. Thanks

Inadequate cost discipline has also raised some eyebrows.
This business OUGHT to be trading better than it is, and that is not a great sign either.
Having said that, I recently added some calls, hoping these guys will get their act together soon,
and earnings will be helped by the high Gold price

I built a model on RGLD this past weekend. I was surprised to find that RGLD is not very leveraged to the price of gold on a NAV basis. According to my model, if gold doubles, RGLD's NAV only goes up by about 60%. They do seem to be trading slightly below NAV by my calculations, but there's not much of a margin of safety. The good thing is they have a lot of cash, free cash flow going forward looks strong, and they are ready and willing to do some big deals. And there are lots of miners out there who may need financing now that the banks are tightening up their lending requirements.

Thanks for that.
What is the leverage calculation based upon?

The chart looks right for a rally from here


(assuming that support holds)

Future free cash flows from all of the royalties RGLD is holding - discounted to present value.

The lack of leverage on the common is a good thing, I think. RGLD is not exposed to a falling gold price. Options can be used to increase the leverage.

Hello all, first post. It was a very good day, but the after close sell off was pretty huge, down 0.63 to 29.50 (-2.09%). Seems a bit much to be explained by profit taking after today's rises. Still seems to be something suspiciously negative about RGLD. What do you think? Could it be the price is being held down until the preferred stock conversion in March, or is it something more sinister?

Any news driving that?
let's see if it stays down in Thursday's trading.

RGLD has been diasppointing while gold rose.
I am very surprised to see it trading below $40 with gold over $925.
(suppose: RGLD/Gold goes back to 0.050, then $944 x 5%: $47.20)

The company has real earnings, and real cash flow.
Dividends too, as this news reflects:
"Royal Gold board hikes annual dividend to 28c" - Nov.2007.

But obviously, some big holders keep dumping the stock everytime it starts to move.
I wish I knew why. But I am still willing to bet that the selling will dry up.

= =

After Hours Trading
RGLD: 2/20/2008 5:07:00 PM Last: $29.4988 Change: -0.5912 Volume: 52,025

that's big volume for after hours, but compare with trading during normal hours:
30.09 Change: +1.01 Open: 28.92 High: 30.24 Low: 28.55 Volume: 637,979

Less than 1/10.

Thanks for the reply Bubb,

I've seen no news to justify the fall, but I'm wary nonetheless.

Something similar happened towards the end of January, where the share price seemed determined to move down regardless of gold and despite no significant bad news. I had a feeling back then that something was wrong and it stopped me from buying at over $30, something I'm pretty glad of now.

Anyway, I'll persevere with this one as the potential seems excellent and most of my holding is sub $29. I just hope the price is only being held back on sentiment and it catches up with gold over the next few months.

History shows that such concerns have been well-founded

Look how Goldcorp/GG outperformed RGLD


But RGLD had less downside too.

My view is that this is a long correction for RGLD, andf it may soon end.
Remember, RGLD's business model means that it should benefit if gold really soars.
It doesnt have the same exposure to rising mining costs. Albeit, management has thus far
show too-little discipline in controlling its own overheads

Gold pushing $970 and still this refuses to budge. I really expected this to fly once $950 was broken, but someone or something has put a real downer on this share.

Today has been particularly frustrating. Just as gold finally broke through the resistance just above $960, RGLD inexplicably sold off and has barely recovered.

This seems way undervalued on every level and I'm at a complete loss to explain why. Can the conversion of preference shares really be the reason? I just can't see it somehow. In the meantime I'm considering the prospect of this lagging the price of gold right up until the next big selloff (which will come eventually), at which point I can see RGLD dropping like a stone and wiping out any gains made so far in an instant.

Am I right to worry, or am I just being an old woman?

Hey Bubb,

Are you still in this one? Performance has been dire when compared to gold in all honesty, $970 GLD and RGLD is barely holding $30. The preferred stock will be converted on 10 Mar, works out to roughly 4 million common shares. That's an awful lot for the market to digest, particularly if gold sells off.

I'm not sure whether to stick with this one to be honest, I'm in profit at the moment, but as I explained in the post above, if gold sells off I can see that turning into a loss all too quickly. I make take the profit and wait for gold's next move, what are your thoughts?

Royal Gold. A faourite on the board here. Is it not presently at a GIP?

Seems to me short, medium and long term MA are very close, with short MA just breaking through medium-term, with the long-term (200) acting as a floor, so bullish. And with the gold price kicker.....

Edit: Copied and modified from the GIP thread

Yes. Im still in.

I most recently bought calls, when it dipped below $30,
and I will probably start selling as many shares as the calls I bought if/when it shoots up thru $32 today.

That will leave me with a lower cost position, with less risk, than when it was last at $32.

This type of trading is not an easy way to make money, I would rather get paid by seeing RGLD soar through $40,
on its way to $50. And I am still hopeful that we will see that.

I dont know what is "wrong" with the stock, apart from:

+ They have not done a great job of controlling costs,

+ They made an acquisition of BMGX (which is what got me into the stock, since I held BMGX),
and that brought some dillution. I heard there are "fears" that they will make more acquisitions

+ The real juice from the acquisition is the Minefinders royalty, and that is only now beginning to
kick in,

+ Franco Nevada, a better managed royalty company, is now public again, so people may be swapping
into that one.

RGLD needs to report a jump in earnings from higher gold, and Minefinders royalties, in order to
get teh stock moving again

Gold to see the uptick in RGLD yesterday on such a bad day for many gold shares

A Routine Dividend announcement was made

Royal Gold Announces Second Quarter Dividend
TUESDAY, MARCH 18, 2008 4:57 PM
- PR Newswire

DENVER, March 18, 2008 /PRNewswire-FirstCall via COMTEX/ -- ROYAL GOLD, INC. (RGLD) (CA:RGL) , the leading precious metals royalty company, today announced that its Board of Directors has declared its second quarter dividend of $0.07 per share of common stock. The dividend is payable on April 18, 2008 to shareholders of record at the close of business on April 4, 2008. The Company has paid dividends since 2000.

Royal Gold is a precious metals royalty company engaging in the acquisition and management of precious metal royalty interests. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD," and on the Toronto Stock Exchange under the symbol "RGL."

The Company's web page is located at http://www.royalgold.com.

RGLD SUMMARY

Year- ended June-- : - 2003- : -2004- : -2005- : -2006- : -2007-

Average Gold price. : $ 334. : $ 389. : $ 423. : $ 525. : $ 638.
Earnings per share.. : $ 0.34 : $ 0.43 : $ 0.55 : $ 0.50 : $ 0.79
Earns. fully dlluted.. : $ 0.33 : $ 0.42 : $ 0.54 : $ 0.49 : $ 0.79
Dividends per share : $ 0.10 : $ 0.15 : $ 0.20 : $ 0.22 : $ 0.26
Ratio: EPS.fd/ Gold.. : 1012.1 : 926.2 : 783.3 : 1071.4 : 807.6

Qtr.- ended -------- : 12/06- : 03/07- : 06/07- : 09/07- : 12/07- : 03/08-

Average Gold price : $ 613. : $ 650. : $ 668. : $ 782. : $ 787. : $ 906E
Earnings per share.. : $ 0.24 : $ 0.14 : $ 0.20 : $ 0.20 : $ 0.13 : $ 0.20E
Dividends per share : $ 0.06 : $ 0.07 : $ 0.07 : $ 0.07 : $ 0.07 : $0.07
Ratio: Gold/4xEPS.. : 638.5 : 1160.7 : 835.0 : 977.5 : 1513.5 : 1130E

The quarters ended: 3/07 and 12/07... were particularly disappointing

((Q1.FY'08))
DENVER, Nov. 1 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the leading publicly-traded precious metals royalty company, today announced first quarter fiscal 2008 net income of $5.8 million, or $0.20 per basic share, on royalty revenue of $12.8 million. This compares to net income for the first quarter of fiscal 2007 of $5.0 million, or $0.21 per basic share, on royalty revenue of approximately $9.9 million. The increase in earnings of 16% was offset on a per share basis due to new capital issued to finance the Company's substantial growth in reserves and royalty ounces over the last year.

((Q2.FY'08))
Royal Gold Reports Record Revenues and Strong Free Cash Flow* in Second Quarter of Fiscal 2008

DENVER, Jan. 31 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the leading precious metals royalty company, today announced second quarter fiscal 2008 net income of $5.1 million, or $0.13 per basic share, on record royalty revenue of $15.4 million. This compares to net income for the second quarter of fiscal 2007 of $5.6 million, or $0.24 per basic share, on royalty revenue of approximately $12.9 million.

Extraordinary, non-recurring expenses related to the Company's evaluation of a business development opportunity and non-recurring Battle Mountain-related charges totaled $2.2 million, or $0.05 per share on an after tax basis. In addition, accounting for accumulated dividends on the 7.25% mandatory convertible preferred shares resulted in an adjustment to earnings available to common stockholders of $1.2 million, or $0.04 per share. This preferred dividend payment will terminate on March 10, 2008, when all preferred shares are converted into shares of common stock. Per share results were also lower than the prior period due to additional shares outstanding relating to the acquisitions of Penasquito, Pasqua-Lama, and Battle Mountain assets, which are expected to be major contributors to the Company's future growth.

Net income for the six-month period ended December 31, 2007, was $10.8 million, or $0.33 per basic share, on royalty revenue of $28.2 million. This compares to net income of $10.6 million, or $0.45 per basic share, for the six-month period ended December 31, 2006, on royalty revenue of $22.8 million. For the six-month period, non-recurring Battle Mountain and extraordinary business development charges totaled $2.2 million, or $0.05 per share on an after tax basis. The Company also recorded an adjustment to earnings per share of $0.04 for the six-month period associated with accumulated dividends on the 7.25% mandatory convertible preferred shares.

Free cash flow for the quarter was approximately $11.2 million, totaling 73% of revenue. This compares to free cash flow for the second quarter of fiscal 2007 of approximately $10.0 million or 78% of revenues.

Link: http://www.royalgold.com/news.asp

Yes, saw the rise, quite comforting on a day like yesterday. Missed the dividend announcement though, could it be the board signalling an intent to lend more support to the share price in the future, rather than proceeding with moves which create share dilution? After all, they have the cash to make purchases without going back to the market.

If gold recovers we may just see that $40 in short order. The cynic in me says that now RGLD has started to play, gold itself will stop. Anyway, I'm off to take some prozac or something.

Looks like the board pulled a good trick here, it's really put a floor under the share price. For once RGLD is outperforming it's rivals.

Floor didn't last long though, it's back below $29, as I predicted would happen if gold sold off. I took the gift of the dividend announcement to get out completely, although I had no idea it would drop this far so quickly, so I dodged a bullet more by luck than judgement to be honest.

This is already looking oversold, and will probably become more so if gold breaks below $900. I'm ready to jump back in if and when gold goes below $887.

Be wary of the next big bounce in the gold price, it could just be an correction upwave setting up bigger falls. Patience and nerve will pay over the next few weeks.

...And back up to $31.

It's nice to see it outperforming Gold

I'm going to wait and see if we retest $900 gold, which I think will hold. I can see RGLD doing another nosedive on the retest though, if that happens I'll jump back in with both feet.

I don't see any evidence of the short position evapourating yet. I think that will come once this correction has been worked through. The upside potential for gold once $1000 has been crossed again will scare the shorts to death.

Ditto for Silver Wheaton I think.

I am lightening up on RGLD a bit, since I bought below $30.

But I shall be watching closely the volume on the retest of the lows, if we see it.
Be careful, very careful, if the downside volume is heavy

Thanks for the advice Bubb. I've raised my caution level in a big way over the past 2 weeks. The gold sell off caught me by surprise, but thankfully I wasn't heavily exposed when it hit. That was pure luck, however, and it made me realise that I'd been taking a few too many risks.

The market seems to be back in goldilocks mode at the moment. Banks are rising, builders are rising (apparently on sector consolidation rumours, ludicrous when you think about it), so I can see gold taking another kicking before we break over $1000 again.

The next month or so could be a real test of patience and nerve for those who are waiting for the best price to enter. It could also dish out some savage lessons to those who jump back in with too much too soon. Another big sell off could put newcomers to the gold market off buying for a very long time.

Yes, Chazza. You could be right.

Here's a key ratio: RGLD-to-GLD (the etf for Gold)


A break above 0.34, and RGLD could be "off to the races"

Today's Ratio-

RGLD : $ 31.00 Change:-0.07 / Percent Change: -0.23%
GLD- : $ 92.24 Change: -1.22 / Percent Change: -1.31%
Ratio : $31.00 / $92.24 = 33.57 ... 34% would be: $31.36

I like the relative strength in RGLD today, so I added some July in-the-money calls,
getting them at a better price that the April calls (same strike) I sold a few days ago

Looking Good... RGLD: $31.75 + 0.55

Bailing out of some April $25 calls, which I have already rolled into July $25 Calls.

Current level, gives me a nice profit on the roll

QUOTE (chazza @ Mar 15 2008, 03:17 PM)
Royal Gold. A farourite on the board here. Is it not presently at a GIP?


Hi guys forgive my ignorance - what does GIP stand for in this context