After a hot start to the year, gold’s performance has somewhat subdued in recent months despite the usual supporting factors staying intact, namely high inflation and a bear stock market.

Now faced with the formidable challenge of supplying enough minerals for the global energy transition, the industry has to dig deep to improve its performance.

Global warming has raised the economic status and political importance of critical minerals, but with that also comes an increased risk of resource nationalism across the globe.

The road to reaching net zero begins and ends with copper.

The need for more and better infrastructure around the world will only get bigger over time, widening the trillion-dollar gap that already exists between planned investment and the amount needed.

For the world’s leading economy, securing reliable supplies for these minerals is especially important to not only sustain its dominance but also shed its supply reliance on key rivals like China.

Some of the world’s largest mining companies and metal traders are warning the shortfall could arrive as early as 2025.

Increased demand from both central banks and investors provides further confirmation that precious metals, in particular gold, are the commodities to look at in 2023.

It can’t just be a coincidence that global central banks are buying this much gold, at a time when they’re making significant losses.

Under a certain market environment, precious metals are considered must-haves in a modern investment portfolio.

Silver Institute says the global silver market was undersupplied by 237.7 million ounces in 2022, “possibly the most significant deficit on record.”

Historically, gold has been viewed as a hedge against inflation, and given the high-price environment now, a rally would make perfect sense.