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Why invest in metal?

They represent:

  1. Pure exposure to the commodity avoiding company and stock market risk
  2. Portfolio diversifier
  3. Exposure to the energy transition and drive to net zero carbon
  4. Hedge for inflation risk

The Platinum Group Metals (PGMs) combine both the properties of industrial and precious metals.  They are sensitive to the business cycle and also have an important role to play in meeting net zero carbon goals. 

Turning to the precious metals, gold has a role as a portfolio diversifier, providing a buffer when other asset classes are under pressure.  It represents a long-term store of value.  Silver has these qualities too, and like the PGMs, because of its widespread industrial use, including in solar panels, has exposure to the business cycle. 

The industrial metals, copper and nickel, are going to be key metals in the drive toward a carbon-free economy. 

Copper is likely to be a huge beneficiary of moves towards the creation of smart cities and infrastructure spend. 

Nickel is a key element in batteries for electric vehicles so is expected to be in high demand to meet the transport energy transition.