Please read the latest update from Baker Steel’s team addressing the opportunities we see in the metals and mining sector at present, with a focus on the precious and speciality metals sectors.
Global financial markets face an inflection point amid the aftermath of COVID-19, the Russia-Ukraine conflict, the rise of a bi-polar geopolitical world, deglobalisation, and with the fight against climate change at a critical juncture. Under these conditions commodities markets and the mining sector have come into sharp focus for investors, with deficits forecast for certain critical raw materials, rampant inflation and growing concerns over energy security.
Alongside these current themes, longer-term secular trends promise to transform the mining sector in the years ahead. The ‘green revolution’ will boost demand for speciality metals, while monetary imbalances, most notably unprecedented expansion of money supply and debt in response to the COVID-19 pandemic, indicates that a re-rating of real assets is due.