Through most of March and April, many commodities staged a rally. The rebound in industrial metals really caught our attention. But we were cautious. There were still many signs that all was not as well with the global economy as world leaders would have had us believe.

This month’s rollover in base metal prices tells us we were right to wait and see if the rally had legs. Prices are off across the board, as you can see in the charts below.

What’s next? We don’t know—and neither does anyone else.

That’s why we’re only interested in high-grade base metal plays with strong gold or silver credits. The optionality is essential in an unsure market.

Buyer beware.