Clean energy technologies rely heavily on metals, yet their connection to clean energy stocks is often overlooked. Understanding whether metals can stabilise energy portfolios is key for investors navigating market volatility.

LITERATURE

We review the 2022 paper ‘Are energy metals hedges or safe havens for clean energy stock returns?’ by Robert Gustafsson, Anupam Dutta and Elie Bouri, published in Energy, Volume 244, Part A.

QUICK VIEW

This study analyses the potential of energy-related metals (e.g. lithium, nickel and cobalt) and precious metals (e.g. gold and silver) as hedges for clean energy investments. The authors define a hedge as an asset that helps reduce risk during normal conditions, while a safe haven protects during periods of extreme market stress.