Loading ...Go Pound SAND !
Sir Plunger posts exclusively at the Chartology Forum for Rambus Chartology Members
https://goldtadise.com/?p=435881
He has been pounding SAND for a while now
Its a Gold Royalty Company
Here is his chart
ALL of Plunger’s recent choices are doing great.
Plunger is the only analyst I have seen who has nailed what and why is going on in financial markets as far back as his Post Bubble Contraction Series was initiated.
https://goldtadise.com/?p=435204
To keep tabs on what he is doing and what he’s thinking in real time.
https://rambus1.com/membership-subscription-service-via-paypal/
These royalty companies will do amazingly well. As a very long term investor, I’ve never bought any of them, choosing to stick strictly with miners. The reason for this is because I am leery of what they’ll do if and when gold and silver become a mainstream investment for everyone, as in a late 1970’s style mania. In such a situation, I think their business model implodes. When every financial institution and hedge fund is scrambling to fund construction of the next gold/silver mine, the royalty companies will no longer be needed. I know that situation is a long way off, but during this end-game scenario that may be coming, I think gold investing could become mainstream again, not just for months, but for years. Paul Volcker won’t be there to save the dollar this time.
Could you please elaborate on your thinking on how they will implode? I do get it that no company needing cash will want to take an offer from a royalty company that will be to the royalty company’s advantage in an environment where people are throwing money at PM companies. However I would think that even if they exist as pure royalty companies they just take in lots of revenue from stale royalty agreements and coast on their name. Old time shareholders can, if necessary bail out — or hold on waiting for a dip in PM prices, when royalty companies’ capital will be more in demand. But I may be missing something. Exactly how does the implosion occur?
Also, royalty companies tend to have their side operations where they actually own things, whether directly as properties or as shares. One or more of the various SAND recommenders (I don’t know about Plunger) has been emphasizing its minority ownership of a property in Turkey (Hod Maden) that apparently may be a huge and rich mine in before many years as a reason for buying it. RGLD, even though it doesn’t have as many properties as it used to, is joint-venturing a property in Alaska and I think owns shares in at least one company, possibly more. Sean Roosen of OR does so much wheeling and dealing in so many ways it’s hard to keep track w/o getting dizzy, but I would suspect if OR doesn’t own shares in companies it would buy them if he thought there was a problem with the business model.
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I said I think their business model will implode, not the royalty companies themselves. Yes, I think they will be fine with the deals they’ve made and the stakes they have obtained in miners through previous deals. My contention is that their main business model of offering to fund mine construction in exchange for a portion of the production, or of the mining company itself, will dry up. When this happens they will not have the appeal they do currently.
Makes sense.
Can you add Silver Fox to the “Posts By Author” section please.
He’s there..down at the bottom left ( out of alphabetical order)
Thanks Fully!
Two things. First, I’ve been making some good profits on SAND with calls. Enough that it’s likely time to buy more shares – so thanks for that reminder from Plunger. Second, OR is one I plan to keep accumulating. When it goes, it should go big. Or, as the saying goes, go large or go home, and I do believe OR will one day go large. So glad you put that recent post up from Plunger.
Biggest challenge now is reminding myself “it’s a bull market” to overcome my recency experience.