Optimism for commodities

Goldman Sachs is not optimistic for all commodities, but for many. The reasons lie in stable demand growth and upside potential is seen for gold and industrial metals. In addition, the geopolitical risk premium for oil has fallen. According to the financial services provider, total returns on commodities are expected to rise from 13% over the course of the year to 18% by the end of the year. One of the "5D bull market trends" is the phenomenon of disinvestment. Low investment in certain commodities leads to selective scarcity. Secondly, it is climate change and decarbonization that require higher prices to attract investors. A third point is a certain risk reduction ("de-risking") in the geopolitical area, which supports the demand for gold and critical raw materials. Another factor is the data center and artificial intelligence sector, which is fuelling demand for electricity. The fifth "D" is rising defense spending. This requires metals.

Copper in particular should experience a strong upturn in demand here. By the end of the year, a tonne of copper could cost USD 12,000. Goldman Sachs expects the price of gold to rise to USD 2,700 per troy ounce, driven by solid demand. The central banks of the emerging markets and Asian households are primarily responsible for this. Investments in companies that have gold and copper in their projects, such as Meridian Mining or Collective Mining, should be an option.

Meridian Mining - https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ - owns the Cabaçal project in Brazil with a prospective copper-gold-silver VMS deposit. 

Collective Mining - https://www.commodity-tv.com/ondemand/companies/profil/collective-mining/ - has a high-grade copper-silver-gold-tungsten porphyry system at its Guayabales project in Colombia.

Current company information and press releases from Collective Mining (- https://www.resource-capital.ch/en/companies/collective-mining-ltd/ -) and Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/  -).

Image source: stock.adobe.com

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