Commodity-based investments without the boredom: Globex Mining, Royal Gold, Mercedes-Benz

Crises everywhere – German automotive industry on the brink

The price of gold has always been a reliable indicator of crises. This year, gold surged well above the USD 4,000 mark. In addition to geopolitical escalation, ongoing wars, and the threat of conflict between Russia and NATO, the crisis in industry is also causing uncertainty. Germany, in particular, appears to be in a mess not seen for decades. Observers have long viewed German industry as too expensive and incapable of disruption. The electrification of the automotive sector once again highlights how difficult it is for German companies to make long-term strategic decisions.

The McKinsey report "A New ERA" warns that technological disruption, high energy costs, supply chain risks, and strict regulation could jeopardize up to EUR 440 billion in gross value added by 2035. This corresponds to around one third of the European automotive sector. In line with this, the ifo Institute reported a massive decline in sentiment in the German automotive sector in September 2025: the business climate index fell from -15.8 to -21.5 points, mainly due to negative expectations. The automotive industry itself appears to have lost hope of a comeback. While even former flagship companies such as Mercedes-Benz are struggling with weak business performance, the fear in the supplier industry runs much deeper. Here, companies like Bosch and ZF Friedrichshafen have already implemented job cuts.

Royal Gold: Dividend king thanks to royalty model

Amid this negative sentiment, demand for precious metals, and gold in particular, remains high. Despite the recent setback, there are many indications that the gold bull market will continue. In this context, royalty companies are becoming interesting alongside producers and exploration companies. These companies can generate steady capital flows from the gold business and can therefore be considered stable investments. One of the best-known stocks is Royal Gold.

Royal Gold is one of the largest companies in the field of streams and royalties from precious metal companies. Royal Gold finances mine developers through advance payments and, in return, receives the right to purchase a portion of the metals produced at fixed prices. This source of income is called streams. If percentage production fees are payable, these are royalties. According to the Denver, Colorado-based company, 67% of its portfolio comes from streams and 33% from royalties, spread across 172 producing development projects in 17 countries.

The fact that Royal Gold is one of the leading license and streaming providers in the precious metals sector is also reflected in the figures. In the second quarter of 2025, the Company generated revenue of USD 209.6 million and net income of USD 132.3 million, or USD 2.01 per share. Operating cash flow was USD 152.8 million. Particularly noteworthy: the adjusted EBITDA margin was 84%, underscoring the capital-light nature of the business model, in which Royal Gold does not operate its own mines but relies on royalty fees. As the only precious metal stock in the S&P High Yield Dividend Aristocrats Index, the Company is also highly regarded by dividend fans. Since 2000, the dividend has climbed by an average of 15% each year – a rare feat in the commodities sector.

Globex Mining: Royalties, but broadly diversified

Globex Mining also takes a unique approach. The Company also benefits from its holdings through licensing agreements or milestone payments. The difference is that Globex invests primarily in early-stage projects and does not focus exclusively on precious metals. While Royal Gold aims to generate medium-term revenues from commodity production, Globex typically only sees income when a company advances a project from Globex's portfolio. Globex holds a total of around 260 properties for base and industrial metals as well as precious metals. The Company also holds interests in critical elements such as lithium and rare earths.

<iframe width= "800" height= "600" src= "https://www.youtube.com/embed/dBDEptshb_E" title= "16th IIF - Globex Mining Enterprises Inc., David Christie, President & COO"
frameborder="0" allow="accelerometer; autoplay; clipboard-write;
encrypted-media; gyroscope; picture-in-picture; web-share"
referrerpolicy="strict-origin-when-cross-origin" allowfullscreen>

Positioned in this way, Globex benefits from the general growth in investor interest in commodities. Although Globex's earnings can fluctuate significantly from quarter to quarter, this also creates great potential. This is the case, for example, when large projects such as Radisson Mining's O'Brien Gold Project, in which Globex holds a 2% net smelter royalty (NSR), go into production. An NSR is a royalty model in which the royalty holder receives a fixed percentage of the net proceeds from the sale of the raw material. NSR holders such as Globex Mining, therefore, earn directly from a mine's sales proceeds without taking on any operational risks or covering costs for personnel, equipment, or exploration.

Globex shares jump

The fact that Globex generates regular income and always has financial leeway with its multitude of projects brings great advantages to investors. Unlike pure exploration companies, Globex Mining does not need to raise capital repeatedly. This reduces dilution risk for long-term investors and positions Globex as a speculative yet stable base investment for commodity enthusiasts. The market now sees it this way too – the share price has risen by 36% over 6 months.