Asset management firm Wisdom Tree surveyed European professional investors on the best ways to hedge inflation.
In this survey, 48 percent favored commodities, 41 percent favored gold, and 40 percent favored industrial metals. Very high inflation rates, the pandemic, supply chain problems, the war in Ukraine, many factors ultimately led to high energy and food prices. In 2022, stocks and bonds, even real estate suffered losses. Only commodities enjoyed a gain. They were among the best hedges against inflation. And commodities will still prove to be an important instrument when inflation declines. 2022 was a year marked by wild swings in industrial metals markets. According to Wisdom Tree, there are now signs of improvement. This is because concerns about an energy crisis, fears of recession and a slowdown in China have become much less pronounced. Inflation has slowed down, the gas storage facilities are well filled, and the economic development in China can start to pick up again due to the termination of the hard zero-covid-strategy.
Thus, the LME industrial metal index has also gone up again since November. The LME, the London Metal Exchange, is one of the largest metal trading centers in the world. So, demand for metals should be on the rise. On the subject of metal supply, there are concerns about shortages, for example, of copper. Even if there is plenty of copper in the short term, in the long-term demand for the red metal will increase due to its applications for the energy transition. So, the outlook is good for companies with copper in their projects.
First, there is Hannan Metals with its prospective San Martin copper-silver project in the Andes in Peru.
Torq Resources - https://www.commodity-tv.com/play/mining-newsflash-with-vizsla-silver-torq-resources-first-tin-sibanye-stillwater-and-mawson-gold/ - is active in Chile where it has three projects that include copper and gold.
Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -) and Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -).
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/
In this survey, 48 percent favored commodities, 41 percent favored gold, and 40 percent favored industrial metals. Very high inflation rates, the pandemic, supply chain problems, the war in Ukraine, many factors ultimately led to high energy and food prices. In 2022, stocks and bonds, even real estate suffered losses. Only commodities enjoyed a gain. They were among the best hedges against inflation. And commodities will still prove to be an important instrument when inflation declines. 2022 was a year marked by wild swings in industrial metals markets. According to Wisdom Tree, there are now signs of improvement. This is because concerns about an energy crisis, fears of recession and a slowdown in China have become much less pronounced. Inflation has slowed down, the gas storage facilities are well filled, and the economic development in China can start to pick up again due to the termination of the hard zero-covid-strategy.
Thus, the LME industrial metal index has also gone up again since November. The LME, the London Metal Exchange, is one of the largest metal trading centers in the world. So, demand for metals should be on the rise. On the subject of metal supply, there are concerns about shortages, for example, of copper. Even if there is plenty of copper in the short term, in the long-term demand for the red metal will increase due to its applications for the energy transition. So, the outlook is good for companies with copper in their projects.
First, there is Hannan Metals with its prospective San Martin copper-silver project in the Andes in Peru.
Torq Resources - https://www.commodity-tv.com/play/mining-newsflash-with-vizsla-silver-torq-resources-first-tin-sibanye-stillwater-and-mawson-gold/ - is active in Chile where it has three projects that include copper and gold.
Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -) and Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -).
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/
