Synchronised global growth, trade tensions and political uncertainty in Europe has put emerging markets under pressure with the consequence of sliding towards contractionary territory.
Commodity markets are very cyclical and higher demand prompt companies to expand capacity. Higher prices attract competition which effects oversupply and causes a decline in price. The worst case scenario is that prices fall below marginal levels causing closure. Mining companies historically operate in a volatile, unpredictable environment but still play an important role in a diversified investment portfolio. For more on this discussion CNBC Africa’s Gugulethu Mfuphi is joined by Andrew Dittberner Chief Investment Officer: Private Client Securities, Old Mutual Wealth and Viv Govender Portfolio Manager, Rand Swiss Offshore.
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.