scroll

Commodities

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 19/06/2026

Commodities

In anticipation of your commodities Webinar - I keep reading about it, everyone's talking about it - where the heck is it? "According to Bell Potter, the next wave of winners will be the commodities required to build and power the AI revolution. Its preferred commodities are: • Copper - Bell Potter's top pick and the "cleanest beneficiary" of the AI boom. • Gold - benefiting from central bank buying and a weakening US dollar. • Aluminium – a leveraged play on AI infrastructure and electrification. • Uranium – exposure to the power requirements of AI and the energy transition. • Rare earths – riding electrification, defence spending and supply-chain reshoring. • Lithium – supported by EV batteries and energy storage demand, with deficits forecast into the 2030s."

Answer

Hi David,

We read the same research which has actually prompted the topic of our Webinar next week. We’re going to delve into all of these issues on Wednesday @ 12.30, and we’ll likely do a follow up report on Thursday to provide more detail. The concept of a commodities super cycle, which the note was addressing, is about structural demand drivers rather than cyclical ones, meaning the cycle should last longer this time around. Specifically, driven by several demand side factors, primarily AI and the global energy transition happening at the same time.

We would argue that Copper is showing this through it’s price. Gold has been volatile, but stepping back and looking with a wider lens, Gold has more than doubled since 2023, Aluminium is up ~30% over the past year and so on. Commodities are moving, and earnings of commodity companies will follow suit over time, and in our view the markets still underestimating this.

chart

LME Copper ($US/MT)

LAST UPDATED 19/06/2026 09:07

Latest Reports

Morning report 19/06/2026

ETF Friday: Four unheralded ASX ETFs MM likes into Christmas

The ASX200 ended its 4-day rally on Thursday, with 65% of the main board closing lower after the US Fed held interest rates in its first meeting under new Chair Kevin Warsh, but signalled that tightening may be necessary to rein in inflation. It was a relatively muted session for the local bourse with only five stocks moving by more than 5%, although they were all in the losers' corner, primarily from the gold space.

Afternoon report 18/06/2026

The Match Out: ASX falls on Fed rate-hike risk, oil slides on Hormuz deal

The ASX 200 fell away throughout the session as Federal Reserve policymakers under new chair Kevin Warsh signalled the chance of a rate hike later this year, hitting tech, financials and rate-sensitive growth names. Defensives held up best, with Consumer Staples and Healthcare the only sectors to post a meaningful gain, while Energy, Materials and IT led the market lower. Oil extended its slide as the US-Iran deal on reopening the Strait of Hormuz raised hopes for a quick return of Gulf supply, while gold and iron ore stayed under pressure from firmer US rate expectations underpinning a rise in the $US.