All of the following stocks have a trailing price to earnings ratio of less than 15, a forward P/E ratio of less than 15, and pay a dividend with a yield of at least 2%.
AngloGold Ashanti Limited
AU
Caledonia Mining Corporation Plc
CMCL
DRDGOLD Limited
DRD
Gold Fields Limited
GFI
Harmony Gold Mining Company
HMY
Kinross Gold Corporation
KGC
Sibanye Stillwater Limited
SBSW
Caledonia is based in the United States, Kinross is based in Canada, and the rest are based in South Africa.
Hopefully, one of these gold mining stocks will make your portfolio shine.
Disclosure: Author didn’t own any of the above at the time the article was written.
Have you ever thought about investing in gold mining companies but were concerned about the risks and lack of dividend income? You may want to consider investing in gold royalty trusts as an alternative.
Gold royalty trusts provide funds to mining company which need a large amount of capital to run their mining operations. In return, the royalty trusts receive a percentage of the gold revenues. The trusts can fund many different mining companies to provide diversification and often buy gold royalty contracts from other companies.
Some trusts also use precious metals streaming, which is when a company makes an agreement with a mining company to purchase all or part of their precious metals production at a predetermined discounted price.
So some of the main benefits of gold royalty trusts are:
Income
Inflation hedge
Portfolio diversification of royalty contracts
Gold diversification from bullion, coins, and mining companies
Possible tax benefits for the dividends
Avoidance of the risks of mining companies
Significantly lower expenses due to small number of employees for the trust versus the large employe expenditures for the mining companies
Liquidity
Here are some examples of gold and silver royalty trusts that may be worth further investigation for you hard assets and/or income portfolio.
Franco-Nevada (FNV) is a Toronto, Ontario, Canada based owner of royalties and streams, and which trades on the New York Stock Exchange. The company has a market cap of $28.4 billion and pays a dividend yield of 0.78%. Dividends are paid quarterly and have increased every year since 2014. The stock trades at 48 times trailing earnings and 44 times forward earnings. Over the last three years, revenues have grown by 15%, operating income has increased by 36%, and net income has gone up by 19%.
Wheaton Precious Metals (WPM), based in Vancouver, Canada, specializes in silver metal streaming, and has a market cap of $21 billion. Some of the companies that Wheaton has contracts with include Barrick Gold (GOLD) and Goldcorp (now part of Newmont (NEM)). Wheaton has a yield of 1.03%, with dividends paid quarterly. The latest dividend was increased by 7.7%. The stock has trailing price to earnings ratio of 37 and a forward P/E of 32.
Royal Gold (RGLD), based in Denver, Colorado and trades on the NASDAQ, provides a yield of 0.94%. Dividends were increased by 7.1% this year, and have increased every year since 2004. It is an $8.3 billion company with a trailing P/E of 31 and a forward P/E of 33.
Sandstorm Gold (SAND), based in Vancouver, has a market cap of $1.7 billion. It has a trailing P/E of 57 and a forward P/E of 56. Currently, there is no dividend.
For a list of more than half a dozen gold and silver royalty trusts along with their yields and other information, click HERE.
Hopefully, one of these gold royalty trusts will help you strike it rich.
Disclosure: Author has a long position in WPM and SAND.
The following informative interview was provided by Dr. Mark Skousen, a financial economist, editor of the Forecasts & Strategies financial newsletter since 1980, and Presidential Fellow at Chapman University, where he recently received the “Most Favorite Professor” Award. He is also the producer of FreedomFest, “the world’s largest gathering of free minds.” He is the author of several books, including The Maxims of Wall Street,now in its 10th edition.
We cover a lot in this interview, including:
The Future of the Stock Market
Bear Markets
Bitcoin, Cryptocurrency, & Blockchain
GameStop
Young Traders
Gold Bullion vs. Gold Stocks
Silver
Inflation
Interest Rates
The Technology Sector
And much, much more
He even gives the name of a gold mining stock that he likes, which trades for less than $5 a share and pays a yield of over 3%!
The Dr. Mark Skousen Interview Enjoy listening to the great insights and information that Dr. Skousen provides:
It is a long interview, so it may take a few seconds to load. You can also download the interview as an mp3 by right-clicking (or Control clicking) HERE and choosing “save as.”
Books by Dr. Mark Skousen
Please note that all of Dr. Skousen’s books can be ordered directly from SkousenBooks.com, and they will be autographed and delivered with free shipping.
Information about the Forecasts and Strategies Newsletter and the trading services can be found at MarkSkousen.com.
Enjoy the interview and Happy Investing!
All opinions are those of Dr. Mark Skousen, and do not represent the opinions of this site or the interviewer. Neither this site, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview.
Over the last three months, stocks have been going up, bitcoin has been going up, but gold and gold mining stocks have been dropping in price.
This is in spite of the fact that gold is considered a safe haven, interest rates are very low, the dollar is weak, and the economy will experience eventual increasing inflation.
Not only that, Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) bought Barrick Gold (GOLD) earlier this year.
So it it time for gold and the gold mining stocks to start moving up?
The following is a group of gold stocks that are down over 10% for the latest quarter, have a trailing price to earnings ratio of less than 20, and a forward P/E ratio of less than 20.
AngloGold (AU)
Caledonia Mining (CMCL)
Galiano Gold (GAU)
Barrick Gold (GOLD)
Disclosure: Author didn’t own any of the above at the time the article was written.
You have a couple weeks left to do your gift shopping. Here is a list of gifts for the billionaire who has everything. Buy them now before they are gone.
007 Aston Martin DBS Superleggera Designed by Daniel Craig
This blue Aston Martin automobile has a powerful twin-turbo 5.2-liter V12 engine, and is being offered by Neiman Marcus. The famous 007, Daniel Craig, custom designed the car. Oh yeah; they will throw in an Omega limited edition platinum watch as part of the deal, and of course two free tickets to the latest James Bond movie.
Price: $700,007
Neiman Marcus
Submarine Sports Car
How would you like to drive a zero emissions vehicle that you and drive on land or underwater. This car is offered by Hammacher Schlemmer.
Price: $2,000,000
Hammacher Schlemmer
Amoro 18k White Gold Colombian Emerald and Diamond Ring
For the special woman in your life, a perfect gift would be an Amoro 18k White Gold Colombian Emerald and Diamond Ring which includes a Colombian Emerald weighing approximately 4.08 carats, and two baguette cut genuine diamonds weighing approximately 1.01 carats.
Price: $110,000
Chartwell Estate
If you are looking to move up to a larger house, Chartwell Estate should make the perfect home. It is also known as the Beverly Hills Mansion. This 25,000 square foot home in Bel Air, California has 11 bedrooms and 18 bathrooms.
Price: $150,000,000 (Sorry, this house was sold literally days ago to Lachlan Murdoch)
photo by Alan Light
Diamond Chess Set
For the Chess Player Who Has Everything: A Diamond Chess Set at a very, very expensive price.
For the billionaire coin collectors, a gold coin might be the best gift. This is a 1796 $2.50 Capped Bust Quarter Eagle with no stars graded AU-58 by PCGS.
Have you ever used Google’s Ngram Viewer? It is an incredible tool. Free, of course. If you don’t know what an ngram is, Wikipedia defines it as “an online search engine that charts frequencies of any set of comma-delimited search strings using a yearly count of n-grams found in sources printed between 1500 and 2008.”
If that is not clear, I will try to define it in very simple terms. It is a chart of the popularity of a word or term or person. For example, I produced a chart of stocks, bonds and gold since 1900.
Gold, bonds, and stocks
The top green line represents gold. Notice how it went up during the roaring twenties and continued up into the middle of the Depression. Bond had a bit of fluctuation, but stocks, surprisingly, didn’t vary much and even during the Depression, remained relatively flat. (Please remember, none of this has to do with the prices of these items, only the popularity of these terms.)
Gold Bonds Stocks from 1960
Looking at the chart from 1960, stocks, bonds, and gold seemed to drop off, except from the year 2000, gold started to move up.
What else can you find with n-grams? How about the popularity of Warren Buffett?
Warren Buffett
Other that a very slight drop-off from 2005 to 2006, Warren Buffett’s chart has been constantly rising.
Want some more interesting charts? How about Artificial Intelligence?
Artificial Intelligence
Look how it started to take off around 1980 and started to drop off in 1989.
Robotics had a similar run but flattened out at a much higher level than previously.
Robotics
Finally, lets look at the stock market by itself, without comparing to bonds or gold.
stock market
It has been generally in an uptrend, but in 2001 it started dropping and continued to drop.
So where can you find this great tool? just go to:
Remember, it can be used for searching anything, not just investment information. You can look up topics related to politics, literature, education, and anything else.
One last one for your amusement and especially financial historians:
by Seth Klarman, which is currently available for $1,300.
