Merryn Talks Money Why It’s Time to Invest in Mining
Commodities Are Undervalued Essentials
- Commodities are essential but undervalued and overlooked by most investors and society.
- Panic or shortages temporarily raise interest, but long-term recognition is lacking.
Why Gold and Metals Are the Unsung Heroes of the Energy Revolution
The world is undergoing not a transition but an addition in energy use, meaning demand for metals like copper, platinum, and silver will rise sharply due to the growth of renewables, data centers, and electric vehicles.
Mining supply faces major challenges: projects are costly, complex, environmentally sensitive, and slow to ramp up, leading to a likely future price shock from underinvestment.
Gold is reasserting itself as a strategic asset amid geopolitical tensions, with central banks, especially in emerging markets, accumulating unprecedented amounts as a hedge against currency and inflation risks.
Investors should consider a measured allocation (around 5% or more) to gold and a balanced exposure to both physical gold and mining equities, which are benefiting from improved cash flows and potential dividends.
Silver and platinum are poised for significant repricing due to their industrial uses, constrained supply, and strong demand from the energy transition and technology sectors.
Energy Addition Raises Metal Demand
- The energy transition is actually an energy addition, increasing demand for metals drastically.
- Supply is constrained by environmental and regulatory hurdles, causing a long-term imbalance.
