Monumental monetary shifts are taking place. Oil is a commodity of the 20th century. Rapidly-growing technologies in the battery space are revolutionizing way the world is powered.
Elon Musk is at the forefront of this movement with his innovations that are turning fossil fuels into a historic relic. Some say oil’s true price per barrel with the “supply glut” that exists and the innovations in the battery space is $20 per barrel.
While there is some truth to that, you do have both inflationary and deflationary forces counteracting each other over the longer-term.
The fact is that oil is still a highly-demanded commodity, and the world isn’t ready to be converted to 100% electricity TOMORROW. The power grid would not support this rapid shift. Cars haven’t gotten to the point YET where they are cost effective enough to be as practical as gas-powered vehicles.
Also, the Fed’s monetary policy and habit of printing trillions of dollars is going to put upward pressure on the price per barrel simply because there are more dollars chasing the same amount of goods.
Times are changing. Take a look at what is happening in cryptocurrencies.
There was a time in the infancy stages of Bitcoin when someone paid 10,000 bitcoins for just one pizza. Hindsight is 20/20, and who knew that those 10,000 bitcoins would go on to be worth north of $10 million in a matter of years. To ignore cryptocurrencies and the advancements in blockchain technology is ignoring what the future holds for us.
Clean Energy Will Not Be Ignored, and the Free Market Wants It
Lithium and cobalt are going hand-in-hand because both are large components to the clean energy trend that is undeniably coming.
As someone who heavily speculates in the mining industry, both of these commodities are especially attractive here in 2017 considering their supply shortages and their need in industrial changes. Cobalt has most recently gained my attention because 60% of the cobalt that is supplied in the world comes from the Congo, a region that has come under heavy scrutiny for their practices and treatment of women and children.
You have children as young as 7 years old in some of these mines. Some have deemed the Congo one of the worst places in the world, considering the militias and armies warring over conflict minerals, with some of the highest rates of violence against women and girls.
Social pressures are pushing companies to do the right thing and invest their money in places where humans aren’t being exploited and taken advantage of. As a result, you have companies like Apple, Blackberry, Motorola, and Intel who are deciding to move away from sourcing their materials from companies that utilize “conflict minerals.”
Companies offering to mine and produce outside of the Congo are going to be in great demand as the world shifts away from the largest producing cobalt nation in the world. And as far as the implications this has in addition to an already existent supply shortage, we could see cobalt double in 2017 alone.
I will be releasing a cobalt story on Sunday that is the definition of offering value while providing solutions to the changing trends and ethical demands that the free market wants. If we see cobalt double, which I see as highly likely in 2017, this could be a game-changer for investors that had the foresight to get in early before the trend really takes off.
You are not going to want to miss this opportunity, because just like most people missed out on the gains that were seen (up until now) in cryptocurrencies, people are going to wish they had paid attention to commodities such as cobalt as this trend drastically shifts.
Expect a major announcement on Sunday morning at 9AM Eastern.