Close menu




November 1st, 2021 | 10:29 CET

Shell, Sierra Grande Minerals, K+S: 4.1% inflation - here is how investors counteract it

  • Commodities
Photo credits: pixabay.com

Inflation in the eurozone climbed to a new record in October - at 4.1%, one can confidently speak of inflation. At the same time, the European Central Bank (ECB) continues to adopt a wait-and-see approach. Although the markets are pricing in an interest rate hike in the eurozone, analysts and the ECB believe these expectations are premature. Given the stuttering economic recovery, it might make sense from the central bank's point of view to delay the exit from the ultra-loose monetary policy a little longer - with all the risks.

time to read: 3 minutes | Author: Nico Popp
ISIN: ROYAL DUTCH SHELL A EO-07 | GB00B03MLX29 , Sierra Grande Minerals | CA82631L1085 , K+S AG NA O.N. | DE000KSAG888

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    Shell: Good, but there are better things

    So far, ECB chief Christine Lagarde and co. are assuming that inflation is only temporary. Still sputtering supply chains and lower energy supplies may have accounted for this temporary effect, optimists say. But inflation can feed on itself. As people bring forward purchases in the face of rising prices, prices keep rising. Such an effect is already being felt in real estate or even services, such as trades. For oil companies, such as Shell, the current inflationary episode is a good market environment - after all, margins are rising.

    According to many experts, such as Deutsche Bank's chief investment strategist Ulrich Stephan, the shares of Shell and other oil multinationals are still moderately valued - especially in Europe. Shell gained, nevertheless within the past three months around 20%. The Company also invests in renewable energy and outwardly presents itself as decidedly "green". That is also due to a judgment that the Company had to accept some time ago, which forced it to become climate-neutral faster than planned. If you look at the chart over the long term, Shell also still has potential. However, investors should not ignore the political headwinds facing fossil fuels. For smaller companies in the oil sector, there may still be greater opportunities.

    Sierra Grande Minerals: 3 projects, less than EUR 5 million valuation

    A small company with multiple opportunities is Sierra Grande Minerals. However, this is not oil, but gold, silver, molybdenum and copper in Nevada. The Company is developing three projects within the Getchel-Comstock-Trend and Walker Lane commodity belts. Not far away is also the well-known Carlin trend and numerous mines around gold and copper. Sierra Grande develops all of its projects at an early stage. That means that crucial preliminary work can be done already from small investments to get indications of raw material deposits and possibly even their economic extraction. Currently, the shares of Sierra Grande Minerals are valued at less than EUR 5 million - so the market's advance praise for the three projects is relatively low.

    Sierra Grande Minerals has already announced results from more than 500 geochemical soil samples showing copper, molybdenum, and silver showings on the B&C Springs property. The next steps include further exploration work. The path Sierra Grande is on is clear: the clearer the potential of the properties becomes, the more likely the share price is to rise. While the current early stage is highly speculative from an investor's perspective, successful exploration would quickly lift the share into other spheres. A crisis development around inflation or distortions in the financial system could also provide a tailwind for the share. The stock is a highly speculative insurance policy against crises, which experienced investors can add to their portfolios.

    K+S: Setbacks remain possible

    The K+S share is also running like clockwork. The fertilizer specialist has always been a good choice when prices rise. Even during the inflation scare after the great financial crisis, K+S was one of the high flyers. After that, things went downhill for the Company: The salt business in the USA paralyzed the Company. Only the sale last year gave K+S room to maneuver. In the meantime, the financial situation has eased, and the inflationary market environment is playing into the Company's cards. However, investors should remember that the share price has already risen sharply and that K+S has anything but a solid balance sheet. Setbacks are possible at any time.


    Investors who want to profit from the current situation with blue chips should prefer oil companies, such as Shell. In the case of K+S, there are still some question marks. In addition, agricultural commodities are not yet a major topic on the markets. Those ready for investments in second-line stocks can also take a closer look at Sierra Grande Minerals. Here is the chance to accompany three raw material projects from the beginning - with all opportunities and risks.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Fabian Lorenz on October 22nd, 2025 | 07:30 CEST

    SHARE PRICE EXPLOSION for commodity gems!? Nordex, Aurubis, Salzgitter, and Power Metallic Mines!

    • Mining
    • Lithium
    • Copper
    • Commodities
    • Steel
    • Wind
    • renewableenergies

    Shares in the commodities and precious metals sector have been unstoppable in recent weeks. Power Metallic Mines could soon become an explosive latecomer to the rally. There are good reasons for this, as the CEO recently made clear. At Aurubis, the rally appears to be over for now. Analysts are skeptical, and the major shareholder is cashing in his shares - albeit in an unusual way. So should you sell now, too? The past few months have been unusually positive for Nordex. There is currently no sign of a slump in the wind business. What are analysts saying after the latest order intake?

    Read

    Commented by Armin Schulz on October 21st, 2025 | 07:15 CEST

    Barrick Mining and Kobo Resources: Gold as security – Occidental Petroleum: Energy as opportunity

    • Mining
    • Gold
    • Commodities
    • Oil
    • Gas
    • Energy

    In an era of geopolitical upheaval and monetary policy experimentation, tangible assets are gaining strategic importance. Gold remains a fundamental store of value, while the transformation of the energy sector is driving demand for critical raw materials. Even oil, despite volatile prices, retains its status as a geopolitical lever. In this environment, companies with access to these resources are well-positioned. Three players are in focus: the gold producer Barrick Mining, the exploration specialist Kobo Resources, and the oil and gas company Occidental Petroleum.

    Read