The Boost From the Hard Assets Rotation | Goldman Sachs Research | Commodities | 8 February 2026

"High for longer. Our analysis suggests that the investor rotation in hard assets can keep several metals prices high for longer, including above what physical fundamentals justify, which we think is the case right now for copper."

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Overview

This report analyzes the impact of the "Hard Assets Rotation"—a shift where active investors move capital from "soft assets" (equities and bonds) into tangible commodities due to macroeconomic uncertainty, geopolitical risks, and currency debasement themes. Because commodity markets are significantly smaller than global financial portfolios, even modest diversification flows can drive substantial price increases.

Core Theses

1. Market Size Disparity: Global copper open interest is ~135 times smaller than outstanding private US Treasuries. Small inflows from large equity/bond portfolios create outsized price moves.