Rare Earth Metals Are the Metals of the Future

Resource profits over the next several years will outperform most other asset classes. You just have to figure out where you want to place your bets and how much risk you’re comfortable taking.
 
Outside of real estate, resource stocks are where the bulk of my money is made and I’ve never seen such a confluence of catalysts across multiple commodities. 
 
Nickel recently hit $24,000 for the first time in a decade. Demand from the electrification of everything is leading to a lack of available supply. 
 
In the UK, lithium cell demand is up 2,368.4%. Not a typo. That’s in one year. 
 
Benchmark Mineral Intelligence — which does a phenomenal job tracking all things critical metals — publishes its own lithium, carbonate, and hydroxide index. 
 
The lithium index is up 280% year-over-year, the carbonate index is up 346% year-over-year, and the hydroxide index is up 204% year-over-year.

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S&P Global reported that the China Association of Automobile Manufacturers predicts the country's electric vehicle sales to reach 5 million units in 2022, up 40% from a year earlier.

With the majority of lithium production coming from China and South America, you can rest assured new discoveries that can be brought to production in stable jurisdictions, within a reasonable amount of time, will receive substantial premiums in the coming years.

The bottom line is either North America gets serious about expediting the development of lithium assets or it exposes itself to an OPEC-like lithium union that continues to run the board on the rest of the world. 

I shared similar thoughts about the rare earth space last month. It is a trend that will continue. 

Make money from it or not, it’ll happen anyway.

Lithium, graphite, cobalt, copper, uranium. These are the metals of the future and we need them now. 

And this is how I’m trading them

Let's get it!

gerardo-sig200

Gerardo Del Real

Editor, Daily Profit Cycle