Chris Curl,
Editor
Jan. 1, 2026
Gold is doing exactly what it’s supposed to do.
As global debt climbs, currencies weaken, and central banks quietly reposition, gold has pushed decisively higher. And if you’re like most investors, you’re probably asking the same question everyone asks during a gold rally:
Should I buy physical gold? An ETF? Mining stocks?
That debate is already crowded.
But while most investors are stuck choosing between bullion and miners, a much smaller group is positioning in a corner of the market that has historically delivered far greater upside during gold bull cycles.
They’re investing in gold royalty and streaming companies.
If that doesn’t ring a bell, that’s by design.
These companies make up less than 0.1% of public markets. They don’t run flashy ads. They aren’t regularly featured on CNBC. And most gold investors don’t fully understand how powerful their model is.
Which is exactly why they’ve been so lucrative when gold runs.
Why Royalties Beat Gold In Bull Markets
During the last major gold bull market (2001–2011), gold rose roughly 660%. A great return by any standard.
But most mining stocks didn’t come close.
Operational risk, rising costs, labor issues, environmental delays, and political interference capped their upside. Even industry giants like Newmont (NYSE: NEM) and Barrick (NYSE: B) underperformed gold itself for long stretches.
Meanwhile, royalty and streaming companies did something very different.
Several rose 1,000%–3,000%+ over that same period.
Why?
Because they don’t mine gold.
They finance it.
The Royalty Model (Why It’s So Powerful)
When mining companies need capital to expand operations, refinance debt, or survive downturns traditional financing is often unattractive. Bank loans come with strict terms. Issuing equity dilutes shareholders.
So miners strike deals with royalty and streaming companies instead.
In exchange for upfront capital, the royalty company receives the right to:
- Buy gold at a fixed, deeply discounted price, or
- Collect a percentage of revenue or production, for the life of the mine.
That discount is often enormous.
A royalty company might lock in gold at $600–$900 per ounce while the market price today sits many multiples higher.
As gold rises, their margins expand.
No labor strikes.
No cost overruns.
No permitting risk.
Just pure exposure to rising gold prices with built-in leverage.
Why This Cycle Looks Even More Favorable
We’re no longer in the early innings of this gold cycle.
Central banks are buying gold at record pace, well over 1,000 tonnes per year. Nations that ignored gold for decades are rebuilding reserves. Sovereign balance sheets are under pressure. Trust in fiat currencies is quietly eroding.
Even crypto-native institutions are moving into gold infrastructure. In 2025, Tether, the issuer of the world’s largest stablecoin USDT, disclosed direct investments into gold royalties and physical reserves. This is a clear sign that gold is being treated as strategic collateral again, not a relic.
This is institutional repositioning.
The Repricing Debate No One Wants to Talk About
The U.S. now carries over $37 trillion in federal debt, with trillions rolling over at higher interest rates in the coming decade. At the same time, the U.S. still officially values its gold reserves at $42.22 per ounce…a number frozen in the early 1970s.
That disconnect is no longer academic.
Over the past year, both Treasury officials and Federal Reserve research publications have openly discussed gold’s role in sovereign balance sheets and global settlement systems. Conversations around reserve realignment, asset backing, and monetary credibility are no longer fringe.
No one knows if, when, or how a formal repricing would occur.
But markets don’t wait for policy announcements… they front-run the most-likely outcome.
And when gold reprices, royalty companies historically amplify that move far more than miners ever do.
The Setup Investors Miss Until It’s Too Late
Here’s the pattern that repeats every cycle:
- Gold moves first
- Royalty companies quietly outperform
- Retail shows up late after the easy multiples are gone
Some royalty names are already up 300%–800%+ from their lows. Others remain deeply overlooked, trading at prices that still reflect the old gold regime… not the one forming now.
In prior cycles, small and mid-tier royalty companies routinely delivered 10x–20x returns once gold entered its acceleration phase.
This is because the market understood their cash-flow power.
Gold is doing its job.
But if history rhymes, royalty and streaming companies will do much more than that.
They offer:
- Leverage to rising gold prices
- Lower operational risk than miners
- Expanding margins as gold climbs
- Scarcity value in public markets
Gold may be making headlines.
But royalties are where bull markets quietly turn into fortunes.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle