Merryn Talks Money Why Investors Are Rotating Into Commodities with BlackRock's Evy Hambro
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Mar 30, 2026 Evy Hambro, BlackRock’s global head of thematic and sector investing, focuses on commodities, mining equities and thematic strategies. He explains why gold and silver stumbled, why capital is rotating into energy and materials, and how underinvestment plus AI-driven demand could kick off a multi-year commodities cycle. He also covers mining valuations, dividends and the implications for portfolio allocations.
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Why Gold Didn’t Hedge The Recent Shock
- Gold fell during the recent Middle East shock because investors sought liquidity, rotated commodity exposure toward energy, and priced higher inflation leading to higher rates which hurt gold.
- Evy Hambro cites a mix of cash rush, portfolio rebalancing into oil/gas, rate expectations, and profit-taking as the main drivers.
Energy Risk Premium Is Likely To Stay Elevated
- The Middle East conflict creates a persistent energy risk premium even if hostilities pause, keeping inflation and policy rate risk higher for longer.
- Hambro argues Iran can sustain periodic disruption reminders, which maintains elevated oil and gas premia.
Financialization Made Gold More Volatile
- Increased financialization and leverage amplified gold's volatility as ETFs, borrowing and algorithmic trading boosted both upside and downside moves.
- Hambro notes margin calls and algorithmic selling deepened the retracement after sharp prior gains.
