Interview with EMX Royalty
Gold as an inflation indicator
In 2020, gold put in a great performance and certainly covered itself with laurels as a strong defender of the portfolio. But since then, the yellow metal has underperformed for many. In principle, one should not be too greedy with gold, it is not Bitcoin after all when it comes to performance. Another point is that gold is a good indicator. It often anticipates inflation in its price very early, when there is no talk of inflation at all.
Situation in the USA
In the US, the inflation and economic situation looks very similar to Europe. Inflation is on the rise. There are shortages of raw materials, personnel or other things on every corner. A large part of these shortages is a direct result of the lockdown policies of Western governments. In addition, there is a huge labour shortage in the US.
The mining sector
The fundamentals are more in favour of the mining sector than they have been for 15 years. Creative destruction had left only the strongest and best companies to survive. These have now climbed out of the long tunnel of the last bear market stronger and ready for the next bull market. With the rise in prices of metals and commodities, many of these stocks have now become value stocks and the balance sheets of the companies are quite respectable. Mining is more profitable than it has been in a long time and companies have large amounts of free cash.
EMX Royalty
EMX Royalty is part of the Royalty & Streaming sector. At the moment they are mainly busy accumulating good assets to be well prepared for the future in the long term. The next decades should be very commodity intensive. This goal is also represented in the share price, which despite ups and downs is performing better than many of its peers. EMX owns many assets around the globe and is therefore also very anti-fragile. The same is true when it comes to the fact that they deal with broad parts of the periodic table and are not just focused on one metal. At the moment, the company is in a state of flux and the fruits of their labour are just beginning to ripen. The current long-term goal is unbroken even if many comrades-in-arms would of course like to have a piece of the pie. But they will have to wait a long time for that opportunity.
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