InvestorQ : What are base metals and what do they consist of as a commodity class?
Akansha Shivdasani made post

What are base metals and what do they consist of as a commodity class?

Answer
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Dawn Cherian answered.
2 years ago


If one looks at asset classes in the last one year, the surprising outperformer has been the base metals. The big rally in these base metals began around September 2016 when Donald Trump made his $1 trillion investment in infrastructure promise. That was music for base metals as such a massive investment in infrastructure would have a multiplier effect on the demand for most base metals like zinc, aluminium, steel and copper. Over the last 9 months since Donald Trump was elected to the President’s office, there have been doubts raised over his ability to push through critical economic reforms like corporate tax cuts and infrastructure spending. However, base metals have continued to be one of the best performing asset classes. Consider the chart below.