Germans put more emphasis on shares when investing money
Most recently, the inhabitants of Germany saved so much in the 1990s, a consequence of the COVID-19 pandemic. And since 2019, the proportion of shareholders has risen by six percent. It is also noticeable that more and more are focusing on companies that have their headquarters outside Germany. For example, an average of 38 percent of a German portfolio now contains foreign stocks. So, it seems that word is getting around that diversification, i.e. the distribution of risks, is an important part of a securities account.
To bring diversification into the portfolio, one possibility would be to look around at the royalty companies. After all, with their focus on licensing and streaming agreements, royalty companies are already active in various metals and projects. In the case of metal streaming, the streaming company makes an advance payment and thus secures a certain percentage of metal production in the future. For these raw materials, the buyer then only has to pay a predetermined price that is significantly below the market price. Royalties, on the other hand, are paid out and calculated, for example, as the so-called net smelting yield (NSR) from the sales minus transport and refining costs.
The advantage for the royalty companies is on the one hand the lower risk, because the mining company bears the operational risk. And on the other hand, the royalty company benefits from rising metal prices and can thus concentrate on growing markets.
Royalty companies include Osisko Gold Royalties, which was very active in October. The third quarter brought record revenues of $41.2 million.
One company, GoldMining (gold and gold-copper projects) has established its own royalty company. This includes gold deposits in various areas of North and South America.
Recent company information and press releases from Osisko Gold Royalties (https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/) and GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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