Skip to main content

This open-pit gold mine belongs to Boro Gold mining Ltd. on the outskirts of Ulan Bator, shown on May 15, 2010.


While gold is the more high-profile commodity that has disappointed investors with its recent slump in price, others are also worrying. But there may be some bright spots.

Like gold, many commodities have slumped in the past couple of years and there are mixed feelings about whether prices for oil and precious metals will manage to perform before mid-2014.

But global demand for raw materials from China is expected to increase and that, coupled with a recovering European economy, could be good news for commodities such as base metals, according to analysts.

Story continues below advertisement

Bart Melek, head of commodity strategy at TD Securities, says he will remain cautiously optimistic in the next year, particularly when it comes to zinc, palladium and platinum – used in industrial and automotive sectors.

"Overall, I think on average we're going to see a recovery in Europe," says Mr. Melek, adding that, as a result, consumers will be more confident in buying manufactured products, such as refrigerators, which require these metals.

For Mr. Melek, recent higher than expected U.S. employment rates "implies the United States is going to pick up as well, and we'll continue to see a strong trend in demand for automotive, for manufacturing, all those things that are very much big consumers of base metals."

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at