Commodities: Focus on Metals

With all the recent attention on the Energy sector (THE CURE FOR LOW CRUDE OIL PRICES…IS LOW PRICES), we thought it would be constructive to look at the positive developments in one of the other market sectors. The Metals sector in the Rogers International Commodity Index® is made up of 10 components diversified across both Precious Metals and Industrial Metals (View RICI® Weightings).

  • As we head into the end of June, 2017, the Metals sector is up over 6% YTD
  • While all three sectors were positive in 2016, the RICI® Metals sector was the strongest;
    up approximately 17%
  • The RICI® Metals sector has been the best performing sector in the RICI® since inception
    compounding at 7.6% since 1998
  • However the average price of the component in the RICI® Sector is still down over 46%
    from its highs since 1998

The expected increase in global infrastructure spending (INFRASTRUCTURE! THE LONG-TERM DEMAND FOR COMMODITIES IS GROWING) should be bullish for commodities overall and specifically for Industrial Metals. Importantly, this infrastructure spending is coming after much of the mining industry was forced to close marginal production and contract due to the 2011-2015 decline in prices.

In a recent letter from John Reese, CEO, we examine the Metals sector in further detail:

Read the Full Letter Here.


An investment in commodities is speculative, may involve a high degree of risk and is suitable only for persons who are able to understand and assume such risk.  Those who are not generally familiar with such risks are not suitable investors and should not consider investing in commodities. This material and any views expressed herein are provided for informational purposes only and this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any interest in such a product. This message contains information which may be confidential or privileged.  It is prohibited for anyone else to disclose, copy, distribute or use the contents of this message. Past performance is not a guarantee of future results.
“Jim Rogers”, “James Beeland Rogers, Jr.”, and “Rogers” are trademarks and service marks of, and “Rogers International Commodity Index” and “RICI” are registered service marks of, Beeland Interests, Inc., which is owned and controlled by James Beeland Rogers, Jr., and are used subject to license. The personal names and likeness of Jim Rogers/James Beeland Rogers, Jr. are owned and licensed by James Beeland Rogers, Jr. Products based on or linked to the Rogers International Commodity Index® or any sub-index thereof are not sponsored, endorsed, sold or promoted by Beeland Interests, Inc. (“Beeland Interests”) or James Beeland Rogers, Jr. Neither Beeland Interests nor James Beeland Rogers, Jr. makes any representation or warranty, express or implied, nor accepts any responsibility, regarding the accuracy or completeness of this website, or the advisability of investing in securities or commodities generally, or in products based on or linked to the Rogers International Commodity Index® or any sub-index thereof or in futures particularly.
Alan Konn

Partner & Managing Director of Price Asset Management

Comments 1

Comments are closed.