January 13, 2017.
Keep that date firmly ingrained in your mind after you cash out on the next resource war.
That was the day H.R. 520 was introduced to the 115th Congress. But to be fair, the name instantly gives things away…
The National Strategic and Critical Minerals Production Act.
It took less than four weeks after President Trump wrote an executive order regarding the country’s supply of a very specific group of natural resources.
In a nutshell, he said we were screwed when it came to being dependent on foreign sources for our nation’s reliance on a host of strategic metals and minerals.
There’s no secret here, folks. No gimmicks, no hyperbole… the cold, bitter pill to swallow is that we’re weak when it comes to these important commodities.
Here they are:
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Scarier is the fact that our main source for many of these commodities is China. And the escalating trade war could put us in a very tight spot.
Perhaps now you understand why Congress acted so swiftly with H.R. 520.
Now it’s time to see what it can do for you…
The Battle for Blue Gold
Going forward, we’ll be talking a lot more about these strategic minerals.
Of course, things would be different if we were only talking about a couple of critical materials. If that were the case, we could cover them all in one day.
But c’mon, you can’t have it all, right?
Unfortunately, we’re not talking about a few commodities here or there. As I mentioned earlier, we’re relying on foreign sources for more than 50% of our supply on over 41 key metals and minerals.
And that dependence is growing, dear reader.
In 2016, we needed to import 100% of our supply of 20 of those commodities!
That’s why H.R. 520 is so important.
So we plan on tackling those opportunities one at a time.
Today, we’ll cover one that’s performing head and shoulders above the rest: cobalt, or “blue gold.”
The Cobalt Crisis
If there’s one commodity on that list above that I know Energy and Capital readers have been on top of since the beginning, it’s cobalt.
Back in March of 2015, I told you I was bullish on cobalt prices.
Remember, a pound of cobalt cost between $10 and $15:
Today, the goblin metal goes for around $40 a pound.
Of course, it felt as if we were shooting fish in a barrel at the time. It was a perfect storm for cobalt prices, from the exploding demand we were about to see for electric vehicles to the fact that the world’s supply of “blue gold” is shaky.
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But I’m not talking about your typical supply crisis, rather a crisis for ethical cobalt.
The fact still remains that the world relies on the Democratic Republic of the Congo (DRC) for well over half of its cobalt supply. What you also know — and the rest of the investment herd doesn’t — is that the supply chain is precarious at best.
As more of those atrocities come to light in the mainstream media, companies will wake up to the fact that the cobalt market is an absolute public relations nightmare.
And that has the world’s biggest auto and tech companies scrambling to ink long-term supply contracts with operations that aren’t tainted by the horrid working conditions found within the DRC.
I can tell you Musk himself is scared, recently making a point to tell investors that Tesla will free itself from the shackles of cobalt.
Here’s a spoiler: It doesn’t matter.
The elephant in the room for the cobalt market is China, and that’s who will drive future demand.
The United States, meanwhile, imported nearly 75% of its cobalt demand in 2016.
And that’s where H.R. 520 comes into play.
As for the cobalt stock I mentioned to pick up years ago, I’ll let you see how that’s performed for readers who saw the same bullish catalysts I did:
Since that piece was published, shares of that stock went on one helluva run, surging as much as 1,100%!
Now, that $0.16 cobalt stock is trading over well over $1 per share.
Thing is, the real potential of this cobalt player is about to be unlocked as it brings the newest primary cobalt deposit in the U.S. into production.
I urge you to take just a few minutes out of your day and see these details for yourself.
Until next time,
A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
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