Bloomberg reported that Sandstorm Gold Inc. contends that it is more profitable to sell gold than to mine it, taking advantage of the spreads, and avoiding the rising costs associated with mining operations.
As quoted in the market report:
Watson co-founded Sandstorm Gold to buy bullion from mining companies in so-called streaming deals that pay in advance for a percentage of output at a discounted fixed price. He then sells the gold to reap the spread between the purchase price and the spot price. Watson set up Sandstorm Metals & Energy Ltd. (SND) in 2010 to apply the same financing model for companies in non-precious metals, oil and gas.