What's better than gold? Vedanta's Anil Agarwal points to a money idea you may have overlooked

Amid rising gold prices, Vedanta chairperson Anil Agarwal wants investors to look at a 'really amazing, less-noticed story' emerging in some metals that are seeing demand in double digits. 

In a post on X, Agarwal said metals such as copper, aluminium, zinc, and silver are fundamental to new-age technologies.

"While gold is known for its intrinsic value, these critical minerals are almost like gold for their functional value. They are fundamental to new age technologies whether those related to energy transition (solar PV cells, batteries, EVs) or in technologies related to artificial intelligence (advanced semiconductors)," he wrote.  

Agarwal called the gold spike as a cycle. "From my long experience, I have seen investors rush for gold in times of geopolitical and global economic uncertainty," he said.

The industrialist termed the options to the bullion as green metals. "They support a climate-friendly world. They are recyclable. And using the latest technology, they can be mined without damaging the environment. Demand for all of these is growing at double digits, much faster than supply". 

India, as the world's fastest growing economy which is expanding its manufacturing capabilities needs to ensure that we are self-sufficient in all these critical minerals. More exploration and simpler clearances are the key.

Gold prices surged by over 1%, buoyed by a weakening U.S. dollar following subdued U.S. jobs data. Spot gold experienced a rise of 0.8%, reaching $2,320.95 per ounce by 1503 GMT. Additionally, U.S. gold futures for June delivery saw an uptick of 0.9%, reaching $2,329.70 per ounce.

Although gold is typically regarded as a safeguard against inflation, reduced interest rates diminish the opportunity cost of holding bullion and exert downward pressure on the dollar, the currency in which gold is denominated. Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "Gold prices saw a decline from the higher levels of 71200 to 70600, driven by profit booking opportunities. Market uncertainty surrounding the interest rate cycle and potential cuts ahead contributed to the downward pressure on gold prices. The Dollar index found support after the Federal Open Market Committee statement hinted at interest rates being held higher for a longer duration, prompting profit booking in bullion. Investors are now awaiting the non-farm payrolls and unemployment data, which are expected to provide further insights into the direction of bullion prices."