Royal Gold weakness driven by gold pullback
The guest attributed the recent weakness in Royal Gold's stock price to a broader consolidation in gold prices rather than any fundamental issue with the company's growth thesis.
The argument
The stock has pulled off its highs in tandem with gold prices consolidating from $5,500 to $4,500, which the guest views as a normal market reaction within a mature bull cycle.
The thesis, stress-tested
✓ What validates it
- ✓Gold price rebounding toward previous highs of $5,500/oz
▸ Risks discussed
- ▸Continued consolidation or downward pressure on gold prices
Hear it yourself
"So I think that's why you see you're seeing interest rates increase because these are Sam's lenders saying, hey. We demand a higher interest rate because you're insolvent. So whether whether it's an honest default and they say, hey. We the government says, hey. We can't pay you all that we owe you, and and you're gonna get 30¢ on the dollar, or whether it's a dishonest default and they just default through inflation where the money that the bondholders receive is worth less than it was, Either one is a default. Now if you're loaning the government the US government money at 5% a year and the the annual the things of the stuff you buy goes up by 10% a year, you're not getting 5%."
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