Tata Asset Management fund manager Tapan Patel advises investors to structure long-term commodity holdings by balancing gold, copper, and silver. Gold has slipped beneath the $4,000-per-ounce threshold as elevated U.S. yields, persistent inflation, and dollar strength sap demand for non-yielding bullion. Simultaneously, copper trades around $14,450 per ton, benefiting from long-term supply constraints and structural demand from artificial intelligence and electrification.
Key points
Portfolio managers recommend a 50:30:20 strategy across gold, copper, and silver to navig…: Portfolio managers recommend a 50:30:20 strategy across gold, copper, and silver to navigate shifting cross-asset dynamics.
Structural demand from artificial intelligence and global electrification underpins a sup…: Structural demand from artificial intelligence and global electrification underpins a supportive long-term outlook for copper despite brief price corrections.
Macroeconomic factors such as tariffs and interest rates are causing commodities to decou…: Macroeconomic factors such as tariffs and interest rates are causing commodities to decouple from traditional correlations and trade on isolated fundamentals.
Sources checked by our analysis pipeline: 1
Listen to this article in summarized format
While gold has come under pressure from a stronger US dollar and higher US bond yields, copper continues to draw support from its long-term demand prospects, driven by electrification, AI infrastructure and the energy transition.
So, should investors look beyond gold to diversify their commodity exposure? And how should they position their portfolios for the next five years?
In this edition of ETMarkets Smart Talk, we speak with Tapan Patel, Fund Manager – Commodities at Tata Asset Management, who shares his outlook on gold, silver, copper and crude oil, explains the changing dynamics driving commodity prices, and suggests a 50:30:20 allocation to gold, copper and silver, respectively, for investors looking to build a commodity portfolio for the long term. Edited Excerpts –
Q) October has been a month of sharp divergence across commodities. What has been the biggest driver behind the contrasting moves in gold, crude oil and copper?
A) We have seen non-linearity amongst commodities this year as commodities are following individual fundamentals apart from general correlation. The biggest driver for this…
Investor enthusiasm has reignited around the drone manufacturer after it snapped consecutive quarters of losses to post a net profit. This financial turnaround has reinforced market sentiment and positioned the business for potential valuation upgrades. Sustained operational performance across upcoming quarters will now be critical to maintaining this upward momentum.
Australian shares closed lower today, with the benchmark index losing ground by the end of the session. The S&P/ASX 200 fell by 0.59% at the close of trade.
Investor attention has turned toward CXMT as the company records a sharp upward move during today's trading session. Market participants are actively assessing the underlying drivers behind this sudden influx of buying pressure. The rapid price change has raised immediate questions among observers looking to determine what triggered the surge.