Gold in physical form is a tangible asset but must be stored securely and selling it requires time and expense. Shares are usually more liquid. Gold mining shares are an alternative or additional option. Both provide diversification in a portfolio. The returns on gold mining company shares can be higher than on physical gold holdings. It is not only the price of gold that counts, but also how a company works, where the project is located, what the financial side looks like and how experienced the management is. Increases in production or the discovery of new deposits can significantly increase the share price. Some companies also pay dividends. However, the risk is higher with shares.
In any case, gold has retained its fascination, whether in ancient, medieval, modern or contemporary times. Investors can turn to royalty companies to spread risks in the equity sector. These have financial interests in gold mines and usually have a large number of agreements with mine operators. Royalty companies help with financing and in return receive royalties (a percentage of sales or mine production) and streams (purchase of part of the production at a fixed price). Operating risks or costs almost always only affect the mine operators, not the royalty company. This structure is therefore a win-win situation for both parties and the investor benefits from risk diversification. The earnings of gold royalty companies are usually stable and growing, as they benefit from a high or rising gold price, among other things. Recommended royalty companies include Gold Royalty and Osisko Gold Royalties.
Gold Royalty - https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ - is pleased about the increase in sales in the past year and further growth through new projects.
Osisko Gold Royalties - https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/- has holdings in the gold and copper sector. This royalty company also posted record revenues 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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/