Video News/Digging Deep

Central bank buying is driving the next phase of the bull market, says Neil Adshead, consultant analyst at the Commodity Discovery Fund. “The marginal buyer is these central banks,” Adshead told Kitco Mining’s Investment Trends. He added that global reserve managers are diversifying away from U.S. Treasuries and into physical bullion, helping to sustain record prices. Adshead also points to copper’s surge following Freeport’s Grasberg mine mudslide, which dumped 800,000 tonnes of mud underground and is unlikely to be fully rectified until 2027. “This is not going to be a quick fix. This is going to take many months to rectify,” he said. He sees a broader shift underway as producers pivot from dividends to growth and more generalist investors enter the market. With precious and base metals rallying, Adshead expects renewed momentum in exploration, M&A, and capital deployment across the mining sector.