Digging for gems in the commodities market

At a high level, the commodities sector appears to be a bright spot in a market ravaged by the pandemic. The S&P/ASX Metals & Mining Index has advanced 7% year-to-date, compared to a nearly 10% fall for the All Ordinaries.

But as investors are well aware, commodity prices don't behave in a homogenous manner. Whereas precious metals such as gold and bulk commodities including iron ore have staged impressive rallies - the likes of oil, lithium and uranium have languished. With select part of the commodities universe having delivered astonishing returns over the last five years, is it time for investors to dig around for better value elsewhere?

Here, Victor Gomes of Eiger Capital and Ben Clark from TMS Capital discuss this very topic, their process for picking resources stocks and their highest conviction plays in the sector right now.

Visit Livewire Markets to access the edited transcript and podcast for this episode, and more great insights: 

Please note: This interview was recorded on 12 August 2020.