From Gold to Bauxite: Why We’re Betting on Industrial Metals in 2026

Yesterday, we closed one of our gold trades: Eldorado Gold [TSX: ELD] for my paid readership group.

Like many gold producers, it’s had a terrific run on the back of surging precious metal prices.

On this trade alone, we banked a near-200% gain in the 18 months we owned it.

In hindsight, that might look easy given that precious metal prices seem to only move in one direction… Up.

But at the time we added Eldorado, gold miners were vastly underperforming the price of gold.

Meanwhile, mid-cap producers like Eldorado were vastly underperforming the larger caps.

The company sat under the radar for investors, despite strong moves in certain gold miners.

Eldorado was also ramping up production at some of the world’s highest-grade gold mines, yet its share price remained flat.

To me, it held the perfect formula. The numbers didn’t lie.

But rising in value some 200% over the last 18 months, this is no longer a hidden gem; the market has caught up to the opportunity and priced it accordingly.

For us, that was a sign to hit the sell button and move on.

So, where to next?

The 2026 Trade: Industrial Metals

Uncovering hidden gems in the resource market while they’re still off investors’ radars can deliver hefty gains.

But in today’s market, you’re probably not going to find it among the gold producers.

That’s why, for my paid readership group, we’ve dug deeper into lesser-known metals, such as zinc, nickel and aluminium.

These are ordinary industrial commodities, not making headlines like critical minerals or precious metals.

So, why would you invest in them?

As I’ve pointed out, industrial metals could become an important theme this year, especially as the breadth of this commodity market continues to widen.

And that’s how we are positioning

The departure of Eldorado Gold from our portfolio paves the way for new opportunities.

Last week, I issued a new recommendation that taps into this industrial metal theme. Specifically, a company mining bauxite.

If you’re not familiar, bauxite is the rock that hosts aluminium, an important material in construction and manufacturing.

It’s one of the world’s key industrial metals due to its light weight, conductivity, rust resistance, and durability.

But this crucial metal faces specific supply constraints that could push prices higher in the months ahead.

How so?

You might recall our focus on the spreading risk of resource nationalisation across the globe, especially within West Africa.

As I pointed out, the heightened risk is often a symptom of stronger commodity prices, where nations seek to capture a greater share of their mineral wealth by bringing mines under state control.

It’s an important trend that we’ve continued to monitor.

So, how could it affect
the aluminium market?

Outside of Australia, Guinea, a country in West Africa, is one of the world’s largest producers of bauxite.

It also hosts the world’s largest ‘unmined’ reserves, making it critical for future supply, as you can see below:

Source: US Geological Survey

However, like its West African neighbours, Mali, Burkina Faso, and Niger, junta-led governments are tightening their grip over mining operations.

And in some cases, taking full ownership of the mines with little or no compensation.

So far, that’s mainly been focused on gold and uranium mines, a direct reaction to higher prices.

However, as the resource bull market broadens, I fully anticipate that nationalisation will spread to other commodities.

In fact, last year, Guinea, the world’s most important source of future bauxite supply, revoked the mining license of a multinational miner, Emirates Global Aluminium.

This effectively puts the company’s assets under state control. Hundreds of millions of capital expenditure, gone in a flash.

Guinea, a major supplier of this important metal, is actively taking over bauxite mines from international firms.

No doubt, there will be consequences.

Nationalism cuts off the flow of international investment, halts mine development and ultimately restricts supply.

The investment angle

Given the lack of operations in safe jurisdictions, this market is difficult for investors to gain exposure to.

And that’s further challenged given that bauxite operations tend to be tightly held by the multi-commodity majors.

Yet, gaining pure-play is the best way to benefit from higher prices.

So, how can investors do it?

Well, there are a few opportunities in the market.

That includes a company I recommended to my paid readership group last week.

A mid-cap bauxite miner offering a rare blend of pure-play exposure and low jurisdictional risk.

A rare find in this market. And exactly the type of stock that could gain outsized attention if we see the commodity cycle broaden out and push base metal prices higher.

And that’s how we leverage our profits at my premium-paid service… Shifting from one hidden opportunity to the next.

If you’d like to find out some other hidden gems in this market, you can do so here.