Dr. Joseph Thomas urges investors to expand beyond gold into copper and energy for long-term growth.
Emerging commodities like copper and energy are reshaping portfolio strategy due to supply constraints and the energy transition.
Gold is no longer the sole commodity of interest in global portfolios. Dr. Joseph Thomas, Head of Research at Emkay Wealth Management, argues that copper and energy markets now hold critical structural relevance for investors. Copper demand is driven by electric vehicles, construction, artificial intelligence data centres, and renewable energy infrastructure, while supply faces headwinds from declining ore quality and limited new mine investments. Energy remains vital, particularly for India, where rising crude prices impact inflation and the balance of payments. Despite these opportunities, commodities remain cyclical and volatile. Consequently, position sizing and diversification are essential strategies. Traditionally, precious metals represented 5% to 10% of portfolios, but investors may soon adopt a broader asset-allocation lens including industrial metals and energy.
