At a high level, the commodities sector appears to be a bright spot in a market ravaged by the pandemic. The S&P/ASX Metals & Mining Index has advanced 7% year-to-date, compared to a nearly 10% fall for the All Ordinaries.
But as investors are well aware, commodity prices don’t behave in a homogenous manner. Whereas precious metals such as gold and bulk commodities including iron ore have staged impressive rallies – the likes of oil, lithium and uranium have languished.
With select parts of the commodities universe having delivered astonishing returns over the past five years, is it time for investors to dig around for better value elsewhere? Here, Victor Gomes of Eiger Capital discusses this very topic, his process for picking resources stocks and his highest conviction plays in the sector right now.
