Are we in a commodity supercycle?

I spent the last weekend in January in Vancouver. I popped into the Metals Investor Forum to catch up with a few people/companies, and then I did the same at the Vancouver Resource Investment Conference, where I also gave a talk about the commodity cycle.

Premium members will be very familiar with the themes:

  • We are in a commodity supercycle that began in 2020 and will likely last for 10-20 years. But we are currently inside a pullback within that supercycle, akin to the mid- to late- 1990s.
  • Not all commodities will move in the same direction at the same time. See uranium and lithium.
  • I believe you still have time to establish and build quality positions, perhaps at lower prices than we’re seeing now. Now time to build positions on dips.

The sentiment at the conferences reflected this bifurcated mood. Both conferences were well-attended, buzzing even. I attended a talk by Ross Beatty that was standing room only five people deep. But his talk was about the current sour mood in the resource space and how it’s a huge opportunity.

And that’s the other side of sentiment. Many small mining companies are struggling to raise capital and even having to return optioned projects. So go back and read the third bullet above. Check out the talk I gave below. And if you want ongoing guidance in the resource and other markets, check out all our premium publications here. 

Call it like you see it,

Nick Hodge

Nick Hodge
Publisher, Daily Profit Cycle