Post by
Tipster1976 on Nov 06, 2020 8:24pm
Zinc..
History does not repeat itself, but it does rhyme. If Joe Biden is elected president in November, its going to be like Christmas morning for industrial, clean energy and precious metal focused junior resource companies. Of course, we dont know for sure what a Biden presidency will look like for mining, but we can use history as a guide. While vice president under Obama, Biden presided over a massive transportation electrification plan. Ahead of the Herd was there, in 2009, and we nailed it when we called lithium a huge investment opportunity. Biden is a tax and spend Democrat, a socialist who believes in MMT and is going to flip the switch on massive coronavirus stimulus money, along with hundreds of billions, trillions, more for clean energy/ renewables and electrification of the US transportation system which is still heavily skewed toward regular vehicles. The added stimulus will be great for gold and silver (though horrendous for the debt) and the clean energy/ infrastructure investments will be bullish for industrial metals silver, copper, zinc and nickel sulfides the latter better suited for the fastest growing segment of the nickel market - EV batteries. The Biden campaign has already said it supports mining for minerals that support his climate plan, and efforts to build a domestic supply chain for lithium, copper, rare earths and other strategic materials the US currently imports from China and other countries. Thats great news for US mining. The only problem? We are facing structural deficits for several of these metals. Without a major push, and fat exploration budgets, to develop new deposits, all the majors will be scrambling for every kind of deposit, to replace reserves. Copper miners will become gold miners, gold mining companies will covet copper-gold deposits, zinc miners will become silver miners, and vice versa. We live in a finite resource world. Structural supply deficits in many of our soon to be much needed recovery metals were already in evidence before covid-19. Global demand for these metals is going to accelerate. Junior resource companies, not majors, own the worlds future mines and juniors are the ones most adept at finding these future mines. They already own, and find more of, what the worlds larger mining companies need to replace reserves and grow their asset base. The mad dash for resources is coming
Comment by
TheFinanceClub on Nov 07, 2020 7:34am
Keep going guys good jobs! I love it too. Much more interesting & constructive than reading frustrated bashers who loses their jobs.