The Amount of Metals Coming Out of the Ground Will Be Seismic And Big Money for Your Portfolio

EV clean metals demand is larger than you realize, and it's time to start buying this stuff at current levels. A generational commodity bull market is underway.

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Postcards June 19, 2023

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An independent and profitable state of mind.

Monday, June 19, 2023

Dear Fellow Expat,

When a government man with a big ego starts flailing about fossil fuels…

You need to understand the endgame…

The United Nations has targeted oil and gas – despite all the fuels’ benefits I touted yesterday.

Yes. I’m very bullish on industrial solar… I invest in industrial batteries… and believe we should employ any possible energy source – from hydroelectric and wind… to natural gas and nuclear.

But there’s one problem with the UN 2030 Agenda, the never-ending rush to carbon-free energy and the demonization of natural gas (Note: Natural gas is WHY the rate of U.S. carbon emissions has been dropping fast since 2010.)

We don’t have enough freaking metals. The Green Transition is one reason why a Generational Commodity Bull Market is coming.

We Need Russia… and a Lot of Diesel Fuel for Mining

In December, I attended a presentation by geopolitical analyst Peter Zeihan, hosted by Odeon Capital. Zeihan discussed globalization and the role of Russia in commodities.

The news was quite troubling for a world that seems to be making a dramatic commitment to reshaping the global energy systems without a deeper understanding of our precious metal needs.

Let’s look at the numbers behind this transition.

To start, we need 3 times the amount of copper produced today.

That figure is not factoring in any major demographic shifts of a world trying to get richer or where the population is expanding in the decades ahead. That figure is also not factoring in Dr. Copper and what happens in any future period of macroeconomic expansion. That’s just to meet green energy goals.

As Zeihan points out, we’ve NEVER – on a global scale – doubled the amount of production for any industrial metal within a decade.

Ever.

And that 3X figure is the most conservative of the production requirements for 14 metals to meet the transition.

First, look at the different metals required for each component of the alternative energy world. Once you take this chart in – and see all the demand – let’s look at the production numbers.

Mineral Requirements for Clean Energy, IEA

At the scale that we need by 2030… Zeihan points out that…

·      We’ll need 4x the Chromium. 

·      We’ll need 10x the Lithium.

·      We’ll need 10x the Nickel. 

·      And we’ll need 18x the Graphite.

Russia’s a top producer of these commodities.

Midjourney: Russian Palladium Mines in the 1940s.

Meanwhile, environmentalists keep U.S. producers out of new mines, and California can’t produce anything without a lawyer holding a producer’s right hand and a regulator controlling the other one.

This Isn’t Hard – Buy the Dang Metals

This transition won’t be easy… but it will be forced. And we know that the clean energy metals demand will be extremely high (and help propel inflation in the process).

This week, I’ll be working on a report on how to invest in these metals. Look out for it soon.

To your wealth,

Garrett Baldwin

Florida Republic Capital (Available on Substack)