Goldman Sachs, global service provider, explains the future of commodities with its "5D bull market".
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
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
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
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
