James Davolos: Precious Metals Royalty & Streaming Deep Dive

<p>Hey guys! This episode, we have James Davolos, from Horizon Kinetics, as a returning guest, sharing valuable insights on various topics. James discusses the nature of sticky inflation and the distinction between structural and cyclical inflation. </p> <p>He also dives into the royalty business model in the precious metals industry, exploring its history and the concept of streaming agreements. James provides insights on exiting a royalty business and emphasizes the importance of conducting due diligence on high-quality royalty companies.</p> <ul> <li>[0:00] Inflation is going to be sticky</li> <li>[6:00] Structural vs Cyclical Inflation</li> <li>[12:00] Royalty Business Model in Precious Metals</li> <li>[15:00] History of the Royalty Business Model</li> <li>[20:00] Streaming Agreements</li> <li>[28:00] Getting out of a Royalty Business</li> <li>[33:00] Due Diligence on a High Quality Royalty Company</li> <li>[46:00] The worst time to be in a Royalty Business</li> <li>[1:02:00] More from James and Closing Questions</li> </ul> <p>If you like what you heard, find out more about Horizon Kinetics <a href="https://horizonkinetics.com/products/etf/infl/" target="_blank" rel="noopener noreferer">here</a>. </p> <p>Finally, thanks to the following sponsors for making the podcast a reality!</p> <p><strong>Mitimco</strong></p> <p>This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns to support MIT&#39;s mission. To help the emerging manager community more broadly, they created <a href="https://emergingmanagers.org/" target="_blank" rel="ugc noopener noreferrer">emergingmanagers.org</a>, a website for emerging manager stockpickers.</p> <p>I highly recommend the site for those looking to start a stock-picking fund or learn how others have done it. You&#39;ll find essays and interviews by successful emerging managers, servic