Royal Gold – I’m Out

by JDH on August 5, 2016

Long time readers of this pathetic little blog will know that one of my core holdings was RGL.TO – Royal Gold Inc.

I liked Royal Gold because it paid a good dividend, was leveraged to the price of gold, and was listed on the Toronto Stock Exchange and therefore was easy to hold in my Canadian dollar investment accounts (which is important to me, because I’m Canadian).

I also own U.S. dollar denominated stocks, but I want to be sure that I am diversifying my currency risk, so I like to keep it simple by holding Canadian dollar securities in my Canadian dollar accounts, and U.S. dollar securities in my U.S. dollar accounts.  Simple.

And so it is with a small amount of sadness that I say goodbye to Royal Gold, because on July 8, 2016 Royal Gold voluntarily de-listed from the Toronto Stock Exchange.

It costs money to maintain a listing on a stock exchange, what with the various reporting requirements and other obligations.  Royal says that with the low volume of trading in their shares on the TSX, and with the ease with which investors can buy their shares on the NYSE, they will save money by simply listing only on the New York stock exchange.

I understand.  Business is business.

But, for me, I need Canadian listed stocks in my Canadian portfolio (and particularly in my RRSP), so I have sold all of my shares in Royal Gold.  I’m not exactly sure what I will replace them with; more on that to follow.

For now, it’s been real, good luck in the future Royal Gold.  It will be without me.