I talked earlier this week about how almost all of my gold stocks are still well under my fair value target price. Out of the 40+ companies I cover, only a handful are at or above my target price.
That’s even after a 100%-150% run-up on average across all three of my portfolios. And it’s not to say that those few that are above my target price are due for a correction.
One way of looking at the age of a bull market is to consider how many companies in the sector are trading above their fair value. At the end of bull markets, it’s usually all of them – with many of them trading at absurdly high valuations compared to “fair value.”
Think about overvalued dot-com stocks in 1999. It wasn’t some of them that were trading at ridiculous valuations. It was all of them – even the worst companies were overvalued.
We’re simply not there yet for gold stocks, and the companies above my target price will likely continue their uptrends higher.
I also mentioned how some of the stocks in these portfolios are better buys today with gold over $4,300 than they were a year ago when gold was $2,600.
We’re seeing margins and potential margins expand much faster than stock prices can keep up.
But there are specific companies that are further behind the curve than others. Namely: gold royalty firms.
These are the slow-moving companies that make up my Golden Portfolio service. They churn higher so slowly that most investors mistake them for being losers during a bull market.
Investors look for movement – and want to get in on a trend while it’s ripping higher. There are plenty of fantastic gold mining stocks that have single, explosive catalysts that result in massive gains over very short periods of time.
I’m counting down to January because one of those companies (in my Golden Portfolio IV service) is going to experience that kind of quick, explosive gain when it starts mining gold for the first time in early 2026.
But gold royalty firms are different.
They don’t have a single catalyst that moves the stock price – because they typically have dozens and sometimes hundreds of royalty deals, all in different stages of production.
And while my gold royalty portfolio is up an impressive 158% so far in 2025, the other two portfolios are up well over 200% on average.
Gold royalties just don’t have the immediate rush of excitement that junior miners do. But the long-term value in these companies is unparalleled – not just among gold miners, either.
Gold royalty firms are some of the best long-term businesses to own, period. The best ones have crushed the market for decades – during gold bull markets and bear markets alike.
I honestly believe it’s the single best publicly traded business you can invest in.
And royalties are lagging my other stock research. That trend might continue for the next year or two, but over the long term?
Gold royalties are the kinds of companies you want to always be nibbling at, adding to positions and holding forever.
Take a look here for more details about my gold royalty service.
If you’re the kind of person who likes to buy assets when they’re on sale, when other people are ignoring them: this is your chance.
Have a great weekend,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio