That didn’t take long!
Investors are fleeing gold stocks like they’re toxic waste – for the absurd reason that gold is down 10% from its highs. As a reminder, gold is now selling for $4,600/oz – a price that it only reached back in mid-January of this year.
It doesn’t take much to turn sentiment around, apparently.
For us, it means we have a chance to buy world class gold stocks for a massive discount. And I know that I frequently talk about these stocks and their discount to fair value – but we’re now seeing deals relative to fair value relative to the price of gold that we haven’t seen in a year – or longer.
If you are serious about gold investing, I hope you understand that we’re in the middle of a very attractive time to put money to work.
For one example, this week one of the royalty firms in my GP service reported earnings.
The company had multiple financial milestones occur in 2025: it went cash flow positive for the first time, it had record earnings and the addition of major royalty acquisitions.
You’d think that a record year or quarter would boost the stock price. You’d think that going cash flow positive for the first time, confirming the business model would de-risk the stock and send it higher.
But this company is getting sold off along with everything else in the gold market.
And that’s only part of the news: this company also reported its 2026 guidance as well as its 5 year projections.
For 2026, the company expects to see 60% higher gold production.
And its 5 year projection: a nearly 6-fold growth in gold production.
Even more ridiculous: it’s a royalty company. It has no exposure to the price of oil. Its royalty deals mean it gets a share of gold production no matter what is happening to the gold miners themselves.
And gold miners are still mining as fast as they can. $4,600 gold is a total bonanza for most miners in the business.
Today, this company is 30%+ off of its highs.
It could dip lower. But when a highly valuable asset goes on sale, that’s a gift. Unless you’re hoping to sell tomorrow, it’s not a bad thing…
The good news: we have a little bit of time. We don’t need to rush. We can be patient, take nibbles, and buy attractive companies in tranches.
Buying in tranches is when you take the total planned allocation for a given position, and you split it up, buying shares in two or more blocks over a period of time.
So if you typically allocate $10k to a position, you might buy $5k worth of a company now, and then another $5k in a month or so.
The benefit is that you can split your risk. If the company dips lower, you can buy more shares later at a better valuation. If it moves higher, you haven’t missed out on all of the upside.
We’re in a very good spot right now. Gold and silver are well off their highs. Attention is shifting towards Iran, oil and other sectors.
But the value proposition in gold stocks is truly remarkable. We will be validated eventually for owning high quality assets at cheap prices.
Patience and diligence will be rewarded.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio