Money Peak: Basic Materials Sector Report

January 18 - January 25, 2026

🔍 Market Overview

The Basic Materials sector experienced a notable increase of 1.73% this week. This positive development stands out significantly from the broader market, with mining companies focused on precious metals and copper posting the strongest gains. In contrast, chemical companies did not benefit to the same extent.

The main drivers of this trend were primarily the continued rise in commodity prices – gold is approaching the $5,000 mark, silver has surpassed the $100 threshold, and copper is trading above $13,000 per ton. Concurrently, supply concerns and increasing demand from the AI industry are providing additional momentum for the sector.

💰 Commodity Price Trends

Precious metal prices remain at record levels. Gold is anticipated to reach the $5,400 mark by the end of the year, with analysts already expecting a $5,000 price in the first quarter. This trend is driven by sustained safe-haven demand and bullish market trends.

Silver has crossed the significant $100 mark, highlighting the strong performance of this industrial precious metal. Its dual role as a precious and industrial metal makes silver particularly attractive in times of economic uncertainty and technological innovation.

Copper prices have stabilized above the $13,000 mark, driven by supply concerns and growing demand from the technology sector, particularly for AI applications and electric vehicles.

📈 Company Performance

Leading mining companies recorded impressive gains this week:

Notably, all five companies are trading near their 52-week highs, reflecting ongoing strength in the sector.

🏭 Production and Demand Trends

The mining industry is currently undergoing significant transformation. Industry leaders such as BHP and Rio Tinto have announced a partnership to jointly extract up to 200 million tons of iron ore from the adjacent Yandicoogina and Yandi iron ore deposits in the Pilbara region. This type of collaboration between competitors suggests a more pragmatic approach to increasing production efficiency and reducing costs.

The demand for copper is described by the BHP CEO as "ubiquitous," underscoring the critical role of this metal across numerous industries. The combination of limited supply and rising demand creates a favorable pricing environment for copper producers.

At the same time, the search for new exploration licenses, such as those recently granted by Elemental Royalty to BHP in Serbia, indicates intensified efforts to expand production capacities for critical minerals.

🛠️ Technological Innovations and Future Trends

The mining industry is facing a technological revolution. According to current industry reports, cosmic rays from supernovae could help secure the supply of critical minerals in the future. This innovative application of space technology could drastically improve efficiency in locating new mineral deposits.

Another important trend is the increasing significance of electronics recycling for recovering valuable raw materials. This could counterbalance China's dominance in rare earths and contribute to supply chain diversification.

The shift from grassroots to brownfield mining is also altering the global mineral supply landscape. Existing mine sites are increasingly being expanded or reactivated instead of new locations being developed, offering both economic and ecological advantages.

💡 Insights for Investors

1. Focus on Copper Producers: Companies like Freeport-McMoRan and BHP are likely to benefit from increasing copper demand. The "ubiquitous" demand, driven by AI, electrification, and green technologies, creates long-term growth opportunities.

2. Keep an Eye on Precious Metal Producers: Given the record prices in gold and silver, companies like Newmont continue to offer attractive value potential. Ongoing economic uncertainty supports safe-haven demand for precious metals.

3. Cooperation Models as Value Drivers: Collaborations between major mining companies such as the case of Rio Tinto and BHP could represent a new model for the industry. Investors should watch for further strategic partnerships that might lead to efficiency gains and cost reductions.

4. Technological Innovations as a Differentiator: Companies investing in advanced exploration technologies and sustainable mining practices could achieve a long-term competitive advantage. These innovations could reduce production costs and accelerate the development of new resources.

This report is for informational purposes only and does not constitute individual investment advice. Investors should consider their own risk tolerance and seek professional advice if necessary before making investment decisions.