As the gambler knows: "You gotta know when to hold 'em; know when to fold 'em." A lot of gold investors may have folded Thursday as prices careened below near-term support, but those more comfortable with the cards in their deck may be more inclined to ante up.
Meanwhile, one player at the table is sitting pretty with a royal flush. Royal Gold
Illustrating the sheer efficiency of the royalty model, Royal Gold's $28.6 million in free cash flow for its fiscal second quarter of 2010 represents a phenomenal 82% of total revenues. Royal flips the age-old adage around -- now, a penny earned is a penny saved. Royalty revenue grew by 138% to $34.7 million, reflecting both a 38% increase in the realized gold price to $1,100 per ounce, and increased production at mines associated with four of the company's 21 producing royalties.
Like Silver Wheaton
Like scoring the ten, jack, and queen of hearts on the flop, Goldcorp
Shareholders were dealt the king last month when Royal Gold closed on a 75% share of the first 910,000 ounces of gold production from the sulfide portion of Teck Resources'
The ace sits atop the dealer's deck, awaiting Royal Gold's proposed acquisition of International Royalty
Please vote in our Motley Poll below to let us know whether you're holding or folding, and share your thoughts in the comment section below.
Gold is a hot topic on the blogs at Motley Fool CAPS. Join the free service today and see just how many Fools are taking the long view when it comes to investing in gold. The "Gold" tag at CAPS lists 47 potential investments, and you'll find Christopher's comments on most of them.
Fool contributor Christopher Barker can be found blogging actively and acting Foolishly in the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Arch Coal, International Royalty Corporation, Royal Gold, Silver Wheaton, and Vale. The Motley Fool's disclosure policy never bluffs.