Investors are loading up on what consumers and economies need to function. Copper and uranium are viewed as necessities for the clean energy movement and will need to be mined in abundance if any goals or even a continued movement toward net zero are to be achieved. However, policy implemented by politicians is sometimes at odds with the reality of extracting billions of pounds of copper.
Professional geologist Steve Robertson explains why the discovery rate in copper deposits has dropped dramatically over the last decade.
Given its widespread use in green energy applications, it’s imperative that copper exploration, and as a result, discoveries, increase in the years to come.
Uranium May Be Key to AI Revolution and Net Zero Goals
The title of Energy.Gov’s article on the outcome of COP28 says it all:
At COP28, Countries Launch Declaration to Triple Nuclear Energy Capacity by 2050, Recognizing the Key Role of Nuclear Energy in Reaching Net Zero
As this dawned on investors and uranium end-users, the price surged. In fact, over the past three years, uranium has outperformed gold, silver, copper, and nearly all other commodities.
Uranium has been on an epic rally, from around $32 per pound in spring 2021 to about $90 per pound in May 2024. From energy demands to policy and geopolitical shifts, uranium may be in a secular bull market. With the world overweight natural gas and coal, it seems logical that nuclear could garner market share of global electricity production (currently represents about 10% of electricity production globally).
Gold Remains the Ultimate Hedge and Diversifier
Gold is nearing its all-time high of $2,450 on Monday morning. In the hours after the assassination attempt on Donald Trump, investors are betting the President will return to his former office next year.
Despite inflation taking hold under the Biden Administration, it was Trump’s Republicans who also ran trillion-dollar deficits that fueled the inflation of the 2020s.
Billionaire investor Stanley Druckenmiller believes a second term for Donald Trump would fuel further inflation.
Former Wall Street trader Jared Dillian explains why adding gold to one’s portfolio is beneficial… Dillian breaks down gold’s historical role in reducing volatility and stabilizing a portfolio. If inflation is here to stay, gold will continue to outperform. The major factor potentially working in gold’s favor is its recent rise to all-time highs in the face of a strong U.S. dollar and high interest rates.
Gold could have a pronounced move if rates are cut and the U.S. dollar index declines…
If you missed our full podcast with Jared Dillian, click HERE.
As the world grapples with climate goals and ambitious policy targets, miners will be called upon to produce more copper and uranium. Finally, for investors, the focus is shifting towards hard assets that fuel our economies and electricity grids.
