Marketdash

Gold's Wild Rally Creates a Tricky Problem for Mining Investors

MarketDash Editorial Team
3 hours ago
Gold is soaring past $4,600, which sounds great for mining stocks. But two major royalty companies just saw their value scores collapse below the 10th percentile, signaling they might be too expensive despite the momentum.

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Gold is having a moment. The precious metal surged to an all-time high of $4,640.13 this week, closing in on the psychologically important $4,700 mark. That's fantastic news if you own gold. But if you own stocks that derive value from gold? Well, things get complicated.

When Success Creates Its Own Problem

Franco-Nevada Corp. (FNV) and Osisko Gold Royalties (OR) are two major royalty and streaming companies that should theoretically benefit from gold's moonshot. And they have. Their stock prices have absolutely ripped higher alongside the metal. The problem? They've risen so sharply that valuation metrics are now flashing bright red warning signals.

According to market data, the "Value" scores for both companies have collapsed into the bottom 10th percentile this week. These scores measure how a stock's market price stacks up against fundamental metrics like assets, earnings, and sales. Translation: the market is paying a hefty premium for these businesses relative to what they actually generate.

The Numbers Behind the Decline

The week-over-week deterioration in valuation is striking. Franco-Nevada's Value score dropped from 11.27 to 9.40, putting it firmly in overvalued territory. Osisko's fall was even steeper, plunging from 10.59 to just 8.81.

What does this mean practically? While both companies remain financially solid, their current share prices appear to be running ahead of underlying business fundamentals like sales and operating performance. Investors are essentially betting on continued momentum rather than present-day value.

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The Momentum Paradox

Here's the irony: the collapse in value scores is actually a symptom of these stocks' incredible success. Both companies currently sport massive "Momentum" scores of 93.72 for Osisko and 91.97 for Franco-Nevada. They're showing positive price trends across short, medium, and long timeframes, which is exactly what's creating the valuation headache.

The performance numbers tell the story. Franco-Nevada shares have climbed 49.92% over the past six months, an eye-popping 87.66% over the past year, and 13.70% year-to-date in 2026. The stock traded 0.89% higher in Wednesday's premarket session.

Osisko has been even more spectacular. The stock gained 49.14% over six months, surged 118.58% over the past year, and is up 14.36% year-to-date. It was trading 0.88% higher in Wednesday's premarket.

So investors face a classic dilemma: do you chase momentum in stocks that are clearly benefiting from gold's historic rally, or do you respect valuation metrics that suggest these names have gotten ahead of themselves? With gold approaching $4,700 and showing no signs of stopping, that's not an easy question to answer. The momentum is real, the fundamentals are solid, but the price might be pricing in a lot of future perfection.

Gold's Wild Rally Creates a Tricky Problem for Mining Investors

MarketDash Editorial Team
3 hours ago
Gold is soaring past $4,600, which sounds great for mining stocks. But two major royalty companies just saw their value scores collapse below the 10th percentile, signaling they might be too expensive despite the momentum.

Get Franco-Nevada Alerts

Weekly insights + SMS alerts

Gold is having a moment. The precious metal surged to an all-time high of $4,640.13 this week, closing in on the psychologically important $4,700 mark. That's fantastic news if you own gold. But if you own stocks that derive value from gold? Well, things get complicated.

When Success Creates Its Own Problem

Franco-Nevada Corp. (FNV) and Osisko Gold Royalties (OR) are two major royalty and streaming companies that should theoretically benefit from gold's moonshot. And they have. Their stock prices have absolutely ripped higher alongside the metal. The problem? They've risen so sharply that valuation metrics are now flashing bright red warning signals.

According to market data, the "Value" scores for both companies have collapsed into the bottom 10th percentile this week. These scores measure how a stock's market price stacks up against fundamental metrics like assets, earnings, and sales. Translation: the market is paying a hefty premium for these businesses relative to what they actually generate.

The Numbers Behind the Decline

The week-over-week deterioration in valuation is striking. Franco-Nevada's Value score dropped from 11.27 to 9.40, putting it firmly in overvalued territory. Osisko's fall was even steeper, plunging from 10.59 to just 8.81.

What does this mean practically? While both companies remain financially solid, their current share prices appear to be running ahead of underlying business fundamentals like sales and operating performance. Investors are essentially betting on continued momentum rather than present-day value.

Get Franco-Nevada Alerts

Weekly insights + SMS (optional)

The Momentum Paradox

Here's the irony: the collapse in value scores is actually a symptom of these stocks' incredible success. Both companies currently sport massive "Momentum" scores of 93.72 for Osisko and 91.97 for Franco-Nevada. They're showing positive price trends across short, medium, and long timeframes, which is exactly what's creating the valuation headache.

The performance numbers tell the story. Franco-Nevada shares have climbed 49.92% over the past six months, an eye-popping 87.66% over the past year, and 13.70% year-to-date in 2026. The stock traded 0.89% higher in Wednesday's premarket session.

Osisko has been even more spectacular. The stock gained 49.14% over six months, surged 118.58% over the past year, and is up 14.36% year-to-date. It was trading 0.88% higher in Wednesday's premarket.

So investors face a classic dilemma: do you chase momentum in stocks that are clearly benefiting from gold's historic rally, or do you respect valuation metrics that suggest these names have gotten ahead of themselves? With gold approaching $4,700 and showing no signs of stopping, that's not an easy question to answer. The momentum is real, the fundamentals are solid, but the price might be pricing in a lot of future perfection.