If you’ve been following the soaring prices of so-called energy metals, then you know that this is their moment to shine!
But, have no fear, this moment does not appear to be fleeting.
Let’s explore lithium, the hot commodity known as “white gold.” Demand is increasing by the day and one of the main drivers is its special role in powering electric vehicles (EVs).
And boy, is the EV market zooming away.
EVs include fully electric vehicles and plug-in hybrid vehicles. Global sales have jumped more than 150% since last year despite pandemic-related supply chain restraints.
Natural resources expert Sean Brodrick — editor of Wealth Megatrends — says it’s quite clear what’s leading the price of lithium:
What we’re seeing now is tremendous demand as more and more of these battery factories get built. The number of electric vehicles being sold is higher every month than anybody predicted. In the investing window that I’m looking at, lithium has very bright prospects.
EV batteries can use lithium carbonate or lithium hydroxide. The EV industry typically talks of lithium carbonate equivalent (LCE), which is a combination of both. Right now, prices are soaring on the spot market for all of them.
And it seems that any supply and demand concerns are leading to “surge and profit” advantages for investors.
Although lithium is not a traded commodity, investors can buy shares of publicly traded lithium companies to gain exposure to this sought-after resource, which is mined from the earth.
In this special six-minute video segment, Sean looks at lithium’s forecast for this super cycle and examines how countries — including the U.S. — can compete with China for a larger share of the global lithium battery market. He also delves into the explosive price action of another energy metal, uranium.
Sean explains the market forces propelling uranium higher:
We use uranium for nuclear power, and it’s been on a rocket ride. It actually touched $50 a pound recently, for the first time since 2012.
People will point to lots of things, including the long-term supply and demand squeeze.
We see more nuclear power plants coming online, so demand is going up and supply is very tight.
Uranium has been so cheap for so long it hasn’t been worth mining it. Some suppliers have found it easier to buy uranium on the spot market than to mine it, so the above-ground stockpiles have been shrinking down, slowly.
However, the real spark for the latest surge in uranium prices has been the buying of uranium by The Sprott Physical Uranium Trust (OTCPK: SRUUF) in Canada.
Uranium can still go a lot higher. There’s a tremendous amount of speculation in the markets today. All that hot money floating around from the world central banks must go somewhere … it goes into speculation like this.
In this insightful video, Sean discusses:
• Price targets for uranium over the next year.
• Why uranium is viewed as “the fuel of the future.”
• An exchange traded-fund (ETF) that made “a heck of a move” in just one month, and why it’s “holding.”
• The future of battery design and which resource could be the next breakout star.
And more!
The information in this short segment couldn’t be timelier. I suggest you watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
