RGLD ( Royal Gold ) Priced in Gold
The chart plots the gold equivalent of 100 shares of RGLD.
To the shock of the reader, RGLD was no profitable since 2003 began, it went in a long sideway channel, heck it may underperform the metal itself. For RGLD to outperform the metal, you need to buy it when 100 shares of RGLD equal 2.70 ounces of gold, and sell shares when 100 shares of RGLD become equal to 6.00 ounces of gold, and the duration of the position holding is unpredictable.
Owning physical gold is much safer than RGLD shares sense it's not profitable.
Even if RGLD broke the long term channel to the up ( when 100 shares of RGLD value become greater than 6.00 ounces of gold ), I don't expect that to be a long term strategy, it's usefull for only two years, and the projected profit to be clearly much less than 800% in terms of gold ounces.
Look;
First profitable rally was in 1992-1994 lasted two years with gain of 24700% in terms of gold.
Second profitable rally was in 2001-2003 lasted two years with gain of 800% in terms of gold.
So, any coming rally will be with lesser gain.
To the shock of the reader, RGLD was no profitable since 2003 began, it went in a long sideway channel, heck it may underperform the metal itself. For RGLD to outperform the metal, you need to buy it when 100 shares of RGLD equal 2.70 ounces of gold, and sell shares when 100 shares of RGLD become equal to 6.00 ounces of gold, and the duration of the position holding is unpredictable.
Owning physical gold is much safer than RGLD shares sense it's not profitable.
Even if RGLD broke the long term channel to the up ( when 100 shares of RGLD value become greater than 6.00 ounces of gold ), I don't expect that to be a long term strategy, it's usefull for only two years, and the projected profit to be clearly much less than 800% in terms of gold ounces.
Look;
First profitable rally was in 1992-1994 lasted two years with gain of 24700% in terms of gold.
Second profitable rally was in 2001-2003 lasted two years with gain of 800% in terms of gold.
So, any coming rally will be with lesser gain.
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