News - Prospector's Diary

A heightened aversion to risk dominates the thinking of most investors as fear of the coronavirus and its impact on the global economy drives money into gold, but if there’s one base metal well placed to ride out this burst of uncertainty it’s Dr Copper. That nickname for copper says a lot about the metal itself because it goes to the secret of its success as a commodity with a vast range of uses, from electronics to construction and transport – especially in electric vehicles, which use three-times the amount of copper as conventional vehicles.

Lithium returned back as an investment favourite last week, riding on the back of a super-charged share-price performance from leading electric car maker Tesla, leaving many investors questioning what’s the best way for them to re-join the lithium race. Lithium 101: Volcanic eruptions often begin with preliminary tremors, but knowing exactly when the earth’s surface might burst open is an event geologists can’t predict, they just know something big is on the way – or, might be on the way.

The coronavirus roller-coaster which drove industrial metals down and gold up is showing signs of slowing, which could be a time for investors to consider a spot of bargain-basement shopping – but there’s no need to rush. Risks remain high and the fear generated by a mutant killer virus is having a real effect on some sections of financial and commodity markets. But if the last virus outbreak, Severe Acute Respiratory Syndrome (SARS) in 2003 is a guide, then a strong recovery is likely.