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Why You NEED to Have Some Exposure to “Blue Gold”

Graham Summers

Posted May 28, 2021

Graham Summers

Over the last week, I’ve outlined how precious metals are telling us that the Fed WILL NOT move to stop inflation any time soon, if at all.

By way of a quick recap…

1) The Fed can stop inflation anytime it wants to buy tightening monetary policy.

2) The multi-trillion-dollar question for the last year has been, “WILL the Fed act to stop inflation or not?” 

3) Gold has just indicated the answer is probably “NOT” as it erupted out of a nine-month downtrend.

Yesterday, I wrote to you about rhodium, the most precious metal on earth, which is 10 times rarer than gold. Even better, unlike gold, rhodium has industrial uses: The precious metal is a key component used in the creation of catalytic converters, which reduce emissions in automobiles. All told, this accounts for over 80% of global rhodium demand.

As the below chart illustrates, this combination of rare assets with industrial demand can mean MASSIVE returns for your portfolio.

Rhodium vs Gold

With that in mind, today I want to talk to you about another rare asset, one I call “blue gold.”

Like rhodium, it’s a rare asset, though not nearly as rare as rhodium.

However, it makes up for this with MASSIVE industrial uses: It’s a critical component for the production of lithium-ion batteries.

These are the batteries Tesla (TSLA) uses for its cars. And TSLA’s not the only one… BMW, Mercedes, Volkswagen, and even Ford are moving aggressively into this space. Production of electric vehicles is predicted to top four million cars globally eventually rising to 12 million by 2025.

And ALL of these cars will need a supply of what I call “blue gold.”

I’m talking about cobalt.

You probably haven’t heard of cobalt since your high school chemistry class. It’s an element with the symbol Co. Historically it’s been used in the coloring process for items like blue glass or China.

Vase

However, in more recent years, cobalt has found a new use — Lithium-ion batteries — as in the batteries electric vehicles use.

There’s one small problem however: The bulk of global cobalt mines are in the Democratic Republic of the Congo (DRC) which is a volatile situation to say the least. Also, the DRC has recently been in trouble with human rights groups due to the fact that child labor is being used to mine cobalt there.

This is a PR nightmare for any firm that supplies its cobalt in the DRC. Which means we’re about to see a global scramble for cobalt supplies in other areas of the world.

Subscribers to my Strategic Impact newsletter were recently recommended an off-the-radar “Blue Gold” company that sits on the ONLY cobalt resources in North America.

As I write this, we are already up 125% on this play. And by the time the smoke clears I wouldn't be surprised if it's a QUADRUPLE digit winner!

Have a great holiday weekend!

Best Regards,

Graham Summers
Editor, Money & Crisis

 

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