Tariff shock for Trump, Concerns about US banks, Gold hype: Globex Mining, Newmont, Bank of America

IMF: US banks are sitting on EUR 477 billion in unrealized losses

Gold usually rises when uncertainty increases. However, the latest tariff ruling from the US is only the tip of the iceberg. Added to this is the geopolitical situation: China, Russia, and India have recently moved closer together again and called for a new world order, and the situation of banks within the US itself is also causing concern. As the International Monetary Fund (IMF) writes, the US banking system is showing weaknesses. The reason: US banks are sitting on a total of USD 477 billion in unrealized losses from securities transactions. Overall, this is the case for around half of the institutions. Either prices will move back in the right direction, or banks will have to realize the losses they have incurred sooner or later.

Bank of America: Much better key figures – Risks remain

Bank of America is in a much better position than many regional banks. Experts estimate that the amount of unrealized losses there is significantly lower. The bank also pursues a diversified investment strategy and, compared to other major banks, is less exposed to the volatile commercial real estate market. In times of tariffs, wars, and geopolitical shifts, Bank of America's active bond management is also helping. Many regional institutions, on the other hand, still hold bonds until maturity, which can entail risks due to growing market anomalies. Nevertheless, analysts do not see any great price potential for Bank of America either and point out that even a well-positioned bank will do poorly if its corporate customers fare worse in the future.

Globex Mining buys commodity projects at bargain prices

In the current market environment, neither bank nor tech stocks, which have consistently been among the winners in recent years, appear to be stable anchors of security for portfolios. Meanwhile, the new all-time high for gold is shifting the focus to companies in the sector. While analysts at Newmont, the world's largest gold producer that also mines copper, see only limited upside potential, the commodity investment company Globex Mining seems well suited to the current climate.

Globex Mining is an investment company that pursues a unique business model. The commodity experts purchase mining properties in North America and develop them further together with partners. These collaborations often lead to exit strategies involving royalties, profit-sharing, or success-based payments. Globex recently acquired 100% of the Blackcliff Gold Zone, which is located near Agnico Eagle's Malarctic Mine, for just USD 142,000. In total, Globex holds a diversified portfolio of over 250 projects in various development stages. Around half of these focus on precious metal projects, while the remaining properties include copper, lithium, rare earths, and other high-demand resources.

250 projects in the portfolio – Will the big exits follow?

All in all, Globex Mining's balance sheet, which is valued at just under CAD 80 million on the stock exchange, holds enormous value. Those who invest in Globex benefit from the management's many years of expertise. It can assess promising raw material projects at an early stage and thus secure price advantages. The fact that the market for early-stage raw material projects is turning and the time for successful exits may also be slowly approaching for Globex is also underlined by a personnel change this summer. The new COO, David Christie, has been contributing his experience in financing and exits at Globex Mining since August. Compared to many junior companies, Globex largely funds its operations through royalty income. If a company wants to further develop a property, royalties are payable. Globex typically retains a small stake in the project or benefits from milestone payments in the event of successful exploration work. Due to these regular revenue streams, Globex Mining is also suitable as a long-term investment.

While large gold producers such as Newmont have recently had to accept rating downgrades despite the positive market environment, Globex Mining's hidden reserves and low-risk business model are gradually fueling share price speculation. Over the past six months, the share price has largely moved sideways. However, the current situation could give Globex Mining a tailwind.