The V Market is Coiled like a Spring: 3 Key Stocks to Own Note: The 3 stocks (LGO, BMN and VAND) mentioned here are all currently traded in the bargain basement. Way undervalued.
https://capital10x.com/the-vanadium-market-is-coiled-like-a-spring/
The Vanadium Market is Coiled like a Spring: 3 Key Stocks to Own
Excerpt
This decade’s most important theme in the eyes of commodity investors is the rise of electric vehicles and renewable energy.
These two revolutions in how we move and generate power are forecast to drive acute supply shortage across multiple commodities such as copper, nickel, lithium, silver and cobalt.
Though we believe shortages will create opportunities in the most well known electric metals, the real money will be made by those who identify the lesser known materials facing the same shortages.
One of those materials is vanadium….
But What About the Looming Risks of a Recession?
We’re not even sure the uncertain global growth outlook can hurt the medium term upside for vanadium. The market is just that tight.
There is a unique natural supply balancing mechanism embedded in the vanadium market due to the fact that a majority of supply comes as a by-product, not the main output of the steel making process in China.
When economic growth and construction activity are weak, falling production of and demand for steel automatically take vanadium supply out of the market, balancing supply and demand.
When you couple falling supply from the steel industry with rising demand from the battery industry, we think even a global recession won’t make much of a dent in the almost inevitable rise in vanadium prices.
Market beating returns come from finding opportunities the crowd has not and among commodities, vanadium stands out.
While research reports and newspaper articles keep rehashing the looming supply deficits in copper, lithium and cobalt, those are all well known.
Conversely, historic vanadium supply shortages are looming, yet barely a drop of ink has been spilled covering it on Wall Street or the mainstream financial media.
We strongly believe investors who look through the radio silence and stay focused on this once in a quarter-century vanadium industry reshuffling will be well rewarded.