2024-02-21 01:46:57 ET
Summary
- Gold is an attractive investment due to economic weakness, overvaluation in the stock market, currency debasement, and potential interest rate cuts.
- Investing in gold royalty and streaming companies provides exposure to gold with less risk compared to miners.
- Sandstorm Gold offers a compelling investment opportunity with high cash flow, manageable debt, and potential for future growth.
Introduction - What Is Happening?
Despite strong market conditions, Sandstorm Gold ( SAND , SSL:CA ) has punished investors with an almost 20% price decline over the past 12 months and an almost 60% drawdown since the gold miners index ( GDX ) peaked in July 2020. This article will examine if those declines are warranted, or if there is now value hiding in this mid-tier royalty and streaming company.
In essence, it is a wonderful time to be investing in gold royalty and streaming, but Sandstorm has been hindered by a high debt load, past share issuance, and perceived counterparty risk, particularly with SSR Mining's ( SSRM ) precarious position following the collapse of their Copler mine ....
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For further details see:
Sandstorm Gold: Irrational Recent Price Decline