Royal Gold (RGL.TO)

Extraordinarily good business. Trades at a substantial premium to net asset value. Extremely well run and a very good balance sheet and very high-quality assets. Would prefer International Royalty (IRC-T).

Purchases other companies and take the royalty flows. Had a big top in late 2002 followed by a number of corrections until early 2004. Thinks it's OK. Struggling with a correction and thinks it will come out of it.

Very expensive. US investors will buy this in the event of an increase in gold prices.