Indian investors should prefer stocks linked with base metals over precious ones, according to Gautam Shah, founder of Dubai-based Goldilocks Global Research, who was bullish on the sector in 2025. “Metal stocks have been the poster boy in India for the last six months. My favourite for last year was metals and for this year is PSUs,” he told NDTV Profit on Monday.
He said precious metals got a “little overdone and parabolic” in the international market over the last few months. Metals — both base and precious — had surged in January as bullish Chinese investors piled into commodities amid doubts about the dollar and a shift away from currencies and sovereign bonds.
“We could possibly see some more correction. One should not indulge in bottom fishing and stay away from precious metals. I think the base metal pack like copper, zinc and aluminium will come back very strongly,” he said.
“If you have to bet anything in hard assets and metals, let it be the base metals. Proxy stocks in India will do well post the near-term correction,” he added.
His advise to investors come amid a plunge in commodity prices globally. Copper fell over 3% and aluminium and nickel 2% each on Monday as bulls in China stepped back from a tumultuous few days that have rocked global metals markets. In the last three months, copper has gained 20% and nickel 18%. Copper had spiked to a record above $14,500 just last Thursday, before plunging below $13,000 a ton on Friday and continuing its slide on Monday, according to Bloomberg.
On the precious side, gold headed for its steepest three-day drop since 1980 as a record-breaking rally unraveled at breakneck speed. Silver extended losses to 40% over the same period.
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