Precious metals specialist Royal Gold (RGLD), which focuses on the acquisition and management of streaming and royalty interests, generated headlines on Monday — though perhaps for the wrong reason. According to the company’s press release, Royal agreed to acquire Sandstorm Gold (SAND) and Horizon Copper (HNCUF) for a transaction equity value of about $3.5 billion and $196 million, respectively. While the acquired entities surged in value, RGLD stock dropped 6.44%.
Overall, long-term investors aren’t feeling too shabby. Since the beginning of this year, RGLD stock gained almost 28%, even with yesterday’s big drop. In the past 52 weeks, the security moved up more than 28%. Just as importantly, while the underlying gold market has been choppy since April, it appears to have reached a stabilization point around the $3,300 level.
