Baker Steel Outlook: Which Metals will Shine in 2022?


Which metals will shine in 2022?

At the start of 2022 we consider that there has rarely been a better time for investors to build positions in selected commodities and mining equities. Natural resources lie at the heart of many of the core themes for investors this year and beyond, which include a shifting macroeconomic environment, tense geopolitics, the prospect of economies reopening post-COVID, and the next stages of the green energy revolution which looks set to transform industrial activity. 


These themes have significant implications for the undervalued natural resources sector, at a time when change is underway and volatility has resurged across global equity markets, ending the “risk on” environment of 2021 which saw global stock markets hit record highs and speculative investing become rampant. As we begin 2022 we consider that the mining sector is only at the start of a major upcycle, and identify several key themes for investors:


  • The new “Green Supercycle” will gather pace
  • The interplay between inflation, rates and geopolitics
  • Mining equities, in particular precious metals, are historically and relatively undervalued
  • There will be significant differentiation between individual producers
  • ESG will continue to become even more important

You can learn more about Baker Steel’s views on the metals and mining sector here or if would like more information on our range of funds, please do not hesitate to contact our team.

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