Eat your heart out, Hannah Montana. Gold as an investment vehicle has seen the kind of meteoric rise in fame normally associated with the stars of stage and screen. The notorious king of pop, Michael Jackson, knew a golden opportunity when he saw one: royalties. Jackson made a shrewd investment in royalties when he outbid Paul McCartney for a catalog of Beatles song royalties back in 1985.
When it comes to gold, Fools may have a similarly golden opportunity for long-term gains through royalties. Unlike high-profile miners like Newmont Mining
As any one-hit wonder from the music business will attest, the true value of royalties is realized over the very long haul. With a business model that commits up-front capital to acquire long-term royalty interests, Royal Gold is more suited to the patient Fool than to the swing trader. That being said, this is potentially a real growth story in the making.
Of the company's 25 producing royalties, two of the most noteworthy mines are still ramping up to full commercial production: Goldcorp's
Fool contributor Christopher Barker has maintained an outperform rating on Royal Gold since November 2007. He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He owns shares of Minefinders, Royal Gold, and Silver Wheaton. The Motley Fool's disclosure policy continues to write the songs that make the whole world sing.