Jews, G-d, Gold and History: Precious Metals Poised to Deliver (RGLD)

May the Glory of Hashem be revealed!

Good Jews and Loyal Noahides!  We’re now entering the space that’s reserved for His holiest to thrive and flower.

May it be His will that we’re all included.

Give thanks and praise to His great name.

And pray salvation comes b’rachamim!

You’ve surely noticed our last several trades were commodity-based.

Nor did you miss the theme of WAR that ran through our recent missives.

Well, today we’re continuing in the same direction by offering a precious metals initiative that forges the whole money-martial-metal concatenation into a single bet that could deliver a maximum 9900% win in extremely short order.

You along for the ride?

Prefer bars or coins?

Our trade is underpinned by precious metal royalty giant Royal Gold (NASDAQ:RGLD), not a producer of the metal exactly, but rather a partial owner of the shiny, mined product.

Royal Gold takes positions in real diggers –

1. via direct investment in particular mines,
2. by offering cash injections to strengthen company balance sheets, or
3. by funding their M&A activity.

All in all, it’s nice work, if you can get it.

Valuing precious metal royalty companies is no simple trick, and because there are so few of them, it’s not always easy to compare.

But there are certain features of Royal Gold’s fundamental report that set it apart from all stocks, not just the royalty players.

Consider them –

• P/E is 34.65,
• Dividend Yield is 1.00%, and
• Price to Book is 3.62.
• But it’s on the earnings front that we see more concern, in particular: Q/Q earnings, which fell by 34.40% in the latest report, and
• Next year’s earnings, which are expected to decline by 4.19%, according to consensus.

So what’s the hubbub?

Royalty players are highly leveraged to the price of gold, so any bump higher by the metal would certainly do RGLD wonders.

That said, the obverse also holds.

Moreover, talk of Russia demanding payment of oil in bullion is, in our opinion, not within the realm of the reasonable.  But it has added to the general gold-hype of the last two weeks.

No nation is ready to jump into a gold-money gambit at this stage of the Freemason-Illuminati globalist takeover.

So…

Have a look now at the chart –

Technically, we see –

1. An overbought RSI read some two weeks back that led to negative divergence against price.  Meaning: the bulls lost their verve, and the bears are assuming control.  Upside momentum is stalling (in green).
2. That’s also evident in the price action, where a rising wedge is now thinning to the point where a resolution is imminent (in red).  Within days, this will resolve to the downside.  Rising wedges always do.
3. There are gaps that need filling between 109 and 112 (in blue), and
4. It’s also to that level that the bunched moving averages are exerting a downward sucking action (!) that could be realized before Pesach (in black).

In other words, we see an opportunity for a quick score here – albeit SPECULATIVE – that would taste better (are you ready for it…) than a k’beitza of matza!

And it’s cooked up like this –

A Jew and His Money recommends you consider selling the RGLD April 14^th 135/140 CALL spread* for a credit of $2.40 (7.00/4.60) and buying the RGLD April 14^th 140/135 PUT spread** for $2.45 (4.50/2.05).  Total debit on the affair is a nickel.

[*Sell the 135 CALL and buy the 140 CALL.  **Buy the 140 PUT and sell the 135 PUT.]

Rationale: who can look 9900% in the eye and not think of lettuce dipped in chrein?

And all for an initial outlay of just five cents?

Not us.

Maximum gain is $4.95; maximum loss is $5.05 (difference between the CALL strikes plus the initial debit).

Breakeven arrives with a decline of 2.05% (to $137.45).

Full money is laundered with a pullback of just 3.79%.

Peanuts.

The only trouble is the time-frame; hence the SPECULATIVE label.  We have to have traction on this one before it expires in SEVENTEEN days.

Redemption approacheth…

And profiteth awaiteth.

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew