On the one hand I see an ongoing demand for commodities like copper, iron and steel and indeed precious metals (to which BRWM has exposure). However, on the other hand, if we suffer a continuing downturn or recession due to Covid or geo-political events, or for example a China event, that could well significantly dampen the demand for commodities/metals.
From the time scale perspective, I tend to look medium term,i.e. where I can see the light down the tunnel, as opposed to very long term whereby I have to travel a long way down a tunnel before there is any glimmer of light!
I note BRWM also has exposure to gold, though whilst attractive currently, I do and can get that exposure through other investments.
I would welcome views on the prospects for the mining sector, particularly taking into account the above points.
This is the breakdown of the mining sectors held by the trust:
Gold 39.3
Diversified 30.8
Copper 17.1
Industrial Minerals 2.8
Nickel 2.6
Platinum Group Metals 2.5
Iron Ore 1.7
Steel 1.6
Materials 0.4
Silver & Diamonds 0.3
Aluminium 0.1
Zinc 0.1
Current assets 0.7
Total 100.0
Moved this topic back here - leaving a link. - Chris