Concerns about the sustainable level of global economic growth, coupled with increased supply in key commodities and political unrest, have all largely contributed to a poor backdrop for the sector.
However, meaningful inflows in silver were recorded in the third quarter as low prices combined with optimism about future demand for the metal created a buying opportunity.
It is also worth noting that if another country starts consuming at the same rate as China did in the past decade, this should support the sector.
Many developing economies are consuming fewer raw materials and their consumption is likely to rise as they increase their manufacturing output and improve their infrastructure.
The natural resources equity sector is comprised of a diverse range of offerings with funds covering all the main sub-sectors, specifically energy, base metals, precious metals and agriculture, while other funds offer more restricted mandates with a narrower investment focus and relatively higher risk.
