Gerardo Del Real,
Editor
Dec. 4, 2024
I hope everyone has a spectacular last month of the year… and we’re certainly off to an interesting start.
Point in fact, China, on Monday, announced it is banning exports to the United States of gallium, germanium, antimony and other important materials.
The move comes a day after Washington expanded its list of Chinese companies subject to export controls on computer chip-making equipment, software, and high-bandwidth memory chips.
The thing about tariffs and export bans is that the United States isn’t the only country with the leverage to carry out such actions.
China is the biggest global source of gallium and germanium, which are produced in small amounts but are needed to make computer chips for mobile phones, cars, and other products, as well as solar panels and military technology.
Nothing happens in isolation. There are already reports that Chinese metals importers have stopped buying US copper scrap in anticipation of tariffs being imposed when Donald Trump assumes the presidency.
The president-elect has threatened to impose 60% tariffs on all Chinese imports. China is imposing duties of 25% on copper scrap from the USA.
It’s called tit-for-tat for a reason, folks, and a lot of people are going to be in for a big surprise once they realize it’s us who’ll be paying the difference.
China will be affected because smelters are already facing scrap metal shortages. Less purchases from the United States equals less supply and more Chinese demand that will likely lead to… you guessed it… higher copper prices and higher prices for everything copper goes into.
For years, I’ve been explaining the silent cold war the US and China have been waging. That silence is no longer so silent and I expect it to only intensify in the new year.
I also expect copper demand to continue to soar over the next several years. Demand I believe will lead to record-high copper prices, which is why I’ve been on the hunt to discover the next great copper-gold belt.
I’ve literally climbed mountains and hiked through creeks and jungles to see the potential of what I believe may be the best speculation of my career.
This project has everything: Grade, scale, and a highly-adept team with the know-how to get the drills pointed in the right direction for shareholders.
It’s also my biggest personal holding in the copper space.
Let’s get it!
Gerardo Del Real
Editor, Daily Profit Cycle