Don’t be fooled by the current correction in gold and gold mining stocks: the gold bull market is intact. Our conservative price target from the editors of the Taipan stock service for the next 1.5 years is: $2,500 per ounce. And that will just be the beginning.

With the right stocks from gold companies, you can even make even bigger profits. The most exciting category of gold companies at the moment are „royalty firms“. Royalty companies fly under the radar on the stock market due to their business model. There are no reports of spectacular gold discoveries from these companies. But that’s where the opportunity lies!

The little-known stars in the gold sector, royalty companies, do not own or operate their own mines and explorations. That is a big advantage. Shareholders don’t have to worry about exploration progress, equipment, permits, or production costs. Instead, royalty companies are highly specialized financiers for the mining sector.

They make financing deals with mining companies that urgently need money to build or operate their gold and silver mines. The deals work like this: a royalty company gives, for example, $5 million to a small mining company to develop a new mining project. In return, the royalty company receives a predetermined share of the future gold production over a fixed period of time.

Now here’s the kicker that makes royalty companies so exciting: the transfer of gold ounces is done at a predetermined price. This purchase price is often significantly lower than the current gold and silver price. This is the interest and risk premium for financing.

Ideal business phase for royalty companies For example, if the royalty deal is made at a purchase price of $1,000 per ounce, the royalty company will receive gold worth $1,000 per ounce later. It doesn’t matter if the current price per ounce is $1,900 or $2,900. This allows royalty companies to make gigantic profits in gold bull markets.

The secret to the success of the best royalty companies are the advantageous deals with gold explorers in need of money. And that’s exactly the phase we’re in right now in the gold mining sector. Since the new gold bull market has not yet started, smaller and even medium-sized mining companies currently have little access to the traditional financial market. This is why it’s now the golden hour for royalty companies to make excellent deals!

Conclusion: Currently, royalty companies can participate very cheaply in gold and silver projects and lay the foundation for extreme profits in the coming years. The seeds are now being planted to reap big rewards in the upcoming gold rally. This is also the best time to buy royalty stocks.