Ryan Stancil,
Editor
Nov. 5, 2021
There are a lot of different ways to make money, both in the present and near future.
As we head further into the 2020s, there are clear technological trends like renewable energy and electric cars. Likewise, defense technology is getting more sophisticated and so are consumer electronics.
Many of these are being put out by big-name companies that you already know: the Teslas (NASDAQ: TSLA), the Microsofts (NASDAQ: MSFT), the Raytheons (NYSE: RTX), and so on.
While these companies have unique offerings, everything we’re going to see over the next few decades has a common origin. Namely, no matter what the technology is or what it does, it all relies on many of the same components.
And while there is money to be made on emerging technology, the real play comes from those common components that make these things work.
You heard about the chip shortage that’s plagued the world over the past year. It’s why cars, gaming consoles, and computers are still sold out worldwide. What you might not have heard about is the increased demand for the metals that make these things work.
How often do you think about copper?
Humans have relied on this metal for countless applications for thousands of years. In the past, we made tools, weapons, and currency from it. Today, it’s used for building material, wiring, and electronics. It’s long been one of the most widely-used metals in the world and its demand is continuing to climb.
The problem is there isn’t enough supply, so the price that’s been skyrocketing all year is only going to keep going up.
It’s the same story with lithium.
While we haven’t used this element for nearly as long as copper, lithium’s use is no less important. Like copper, it has a wide range of industrial uses. Anything you own with a rechargeable battery needs it. Electric cars, which are going mainstream sooner than later, need a lot of it. Everyone needs lithium and there isn’t enough of it to go around. That’s why its price has been running away all year and will continue to do so.
These metals are just two of many that are seeing their worth rise, but they’re hardly the only examples. Still, they paint a picture of what the investment landscape is going to look like over the next decade.
And keep in mind that both of these metals are set to play a big role in the expansion of clean technology that’s currently happening.
Lithium batteries will be needed to store the energy created from sources like wind and solar. Copper, because of its conductivity, will be used to help transmit the energy generated by those same sources.
When you consider the number of countries that have pledged to cut back on greenhouse emissions and use more renewables, you see why the cost of metals like copper and lithium can’t go anywhere but up.
This investment story is in its early days, even with prices where they are now.
In this case, small, little-known companies are the way to go.
Because not many people know their names, they’ll fly under the radar while commodity prices continue to climb.
Once this story starts getting more attention, investors in these small green resource plays will be in the perfect place to reap the profits to come.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle