RGLD is a royalty company that invests, acquires and manage precious metals royalties and streams. The very strong technical chart suggests it's an ideal play to capture upside in gold while keeping risk low. Their margins are typically much larger than explorers and producers, which allows them to thrive even during gold bear markets, which explains the drastically lower volatility compared to the gold chart. Now that gold looks to be poised for a major move, I think RGLD gives us great opportunity and surely deserves a look here.
I labeled some technical signals on the quarterly and monthly timeframes. The long term trend is already up, and targets point to prices over $200 in the not so distant future. Best of luck if investing in shares of this company.
Absolutely beautiful, Ivan. The potential is huge. Imagine one could have bought this stock at $0.03 1993 during the gold mining shake out (due to the BRE-X Mining scandal) and now we are looking at $900 as a realistic target. Actually if you regard the period 1997-2017 as a running correction on the 1993-97 run you will end up with $12 000 as a technical target. Who knows what will happen but the potential is really stunnning
IvanLabrie
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@bracken, hi, thanks. And yes, it's a great chart, but sadly, I wasn't around to buy it lower before. Now it looks very good.
Cheers!
faronf
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should one wait for a pullback now to get in on RGLD?
IvanLabrie
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@faronf, you can try buying miners as well. Some are still at good levels to buy.
RGLD is not bad here, today's move is a very good signal. Figure out the average 1 month volatility, and size your trade based on that, to risk whatever you want to risk if it goes against you as a worst case scenario.