Anyone follows ( or owns) any of the lower multiple ( I mainly focus on low multiple miners) royalty companies. I own some shares of EMPYF and GROY.
I can’t quite understand why these royalty companies aren’t appreciating at these levels. They’re crushing it on the revenue and earnings side, and aren’t exposed to potential mining cost inflation.
MINING.COM
@mining
Tungsten prices rose 310% between January and July, one of the sharpest commodity rallies of the year.
China produced 79% of the world’s mined tungsten in 2025 and controls 85% of refining capacity, its own mined output actually fell 10% year-on-year as export controls tightened.
Even if every announced project outside China succeeds, S&P Global still projects a 16,000-tonne supply gap by 2030.
Prices have already cleared the cost needed to fund new mines. New projects can still take up to 16 years to reach production.
Source: S&P Global (via The Oregon Group)
Lee Roach
@leevalueroach
Everyone knows real assets beat bonds in a hyperinflation. Fewer people know what the German state did about it afterward.
In 1923, hyperinflation wiped out mortgage debt in Germany. A landlord who owed 100,000 marks in 1914 could clear it in 1923 for what was, in real terms, spare change. Property owners came out the other side holding their buildings free and clear. Bondholders and savers came out with nothing.
The government noticed.
In February 1924, three months after the Rentenmark stabilized the currency, Berlin passed the Third Emergency Tax Decree. It did two things. First, it “revalued” old mortgages at just 15% of their gold value (later 25%), so creditors got a sliver back and owners kept most of the windfall. Second, it created the Hauszinssteuer, the house-rent tax, on every residential building built before 1918. The rate was set as a share of the building’s pre-war “peace rent,” typically 20–40% depending on the state.
The logic was explicit: the state saw a pool of unearned gain sitting in real estate, and it wanted it back. The tax was designed to replace the mortgage payments that had just disappeared. It also solved two other problems. The government was broke, and Germany had a severe housing shortage. A fixed share of the revenue was earmarked for subsidized construction.
The results were dramatic. The Hauszinssteuer became one of the largest revenue sources of the entire Weimar period, bringing in around a billion Reichsmarks a year by the late 1920s. It financed the famous Weimar housing estates, including Bruno Taut’s in Berlin and Ernst May’s “New Frankfurt,” and a large share of the roughly 2.5 million dwellings built between 1924 and 1931. Several of them are UNESCO sites today.
Politically, it was poison. Many of the owners were small middle-class landlords. Some had never held a mortgage and got no windfall at all, but were taxed anyway. Landlord associations became a permanent lobby, and the grievance fed into the middle-class resentment the right wing, including the Nazis, exploited. Private rental investment collapsed, since the tax plus rent control left no margin. Brüning cut it in 1931 during the Depression and allowed owners to buy their way out. The Nazi government abolished it entirely in 1942–43 through a final lump-sum redemption.
Nearly twenty years of clawback.
The lesson for anyone treating farmland, timber, or real estate as a hedge against a sovereign debt crisis: the hedge worked. And then the state spent two decades taxing it away, with the political cover to do so precisely because the gain looked unearned.
in fact the reverse, strong up openings are still being aggressively sold …so no bull mkt for them yet,
Thanks for the post on rates. I decided not to close but lighten my shares for now. I don’t think they want these wars to end. I think they want them to expand. WW111 will be everyone will be fighting with someone. Chinas president XI is visiting this month. If Trump makes some deal that includes Taiwan belongs to China will be telling. It might look like avoiding trouble but they’re not only be throwing Taiwan under the bus but tell that to Japan. He also won’t leave NATO.
Didn’t we have some tremors of a Yen move a couple weeks ago?
I’m wondering if this is something that will last for a while or whether it’s a one off again.
They’ve really got their hands on silver, feels like they are desperate to prevent it from busting a move. The silver shares yesterday were telling a completely different story.
I’ll be praying for the folks in Kauai, and that the hurricane moves quickly across the island and doesn’t linger. Those winds are so destructive. We went through a Cat. 5 here a few years ago and it just sat over the area for about 6 hours. The place looked like a war zone. 100-year-old oak trees completely uprooted, palms snapped in half.
Hope you are enough out of harms way to avoid the devastation.
Dlr/Yen was a one way bat for ages…short yen….loads are being being stopped/pushedout.
but rates have come back to flat after being down a little. Naturally, that was the cue to take a hammer to silver, which was up over a buck and over $66, but now is up a whopping $.15.
Oil is the stunner, up again and over $92 now. Something is just going to have to be done about that pesky Iran.
SM flat, pm shares look pretty good again.
The Yen is on fire against the dollar, not sure what’s happening there.
