Melt-up
Much like a heavy-metal band, the metals market shifts from smooth riffs to chaotic breakdowns in a heartbeat. For those who can handle the volume, the rewards can be just as epic.
The highs and lows of commodities markets can feel a bit like headbanging in a moshpit. Exhilarating? Absolutely, as long as you’re ready for the noise. The market for base metals, precious metals and rare earths is cyclical and macro-driven. And lately, there’s been no shortage of macro shocks.
It’s why gold – aka the fire extinguisher of the financial world – has been looking shinier than ever. It hit a record US$3,500 per ounce in April and is still up 27% YTD. Gold miners like AngloGold Ashanti ($AU) have ridden the rally, gaining 90% over the same period. In a world thrashing with inflation spikes and geopolitical distortion, gold’s been the power chord cutting through the chaos.
Dr. Copper, meanwhile, is on a comeback tour. After getting caught in the crossfire of China’s slowdown and global rate hikes, copper is now staging a bullish breakout – matching gold’s 27% YTD run. Goldman Sachs has even flagged worsening shortages with or without tariffs.
The U.S.’ largest copper miner Freeport-McMoRan ($FCX) has taken centre stage, gaining 7% in the last week. Closer to home, copper pure play Sandfire Resources ($SFR) and diversified mining behemoth BHP ($BHP) are also riding the wave.
Then there’s uranium. Once a sector that had investors feeling somewhere between Paranoid and Run To The Hills, it’s now turning the volume back up to 11 as the world rediscovers nuclear energy’s low-carbon power. Add geopolitical supply constraints, and the current price cycle feels less speculative than past booms. Uranium heavyweight Cameco ($CCJ) is playing lead guitar in this rally – up over 40% YTD, with a blistering solo performance in the last month alone.
And as the global energy transition amps up demand for solar panels, EVs, and electronics, one often overlooked metal finds itself back on the mainstage: silver. First Majestic Silver ($AG) and Pan American Silver ($PAAS) are strapping in for what could be a breakout setlist if silver prices keep climbing.
But maybe, the savviest act on the bill is precious metals streaming firm Wheaton ($WPM). It doesn’t actually own any mines, but thrives on gold and silver rallies. (We put its business model Under the Spotlight here).
With commodities back in the spotlight, now’s the time to tune your portfolio to the right frequencies. Whether you’re into momentum plays or reading shifts in supply-demand dynamics, understanding the macro signals might be key to knowing when to hold the note – and when to let the feedback fade.
This is not financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.
