Metals That Could 10x Before Gold & Silver - (The Coming Supply Crisis)

Summary

In this video, the host explores lesser-known metals like platinum, palladium, rhodium, tungsten, antimony, nickel, and copper, highlighting their potential for explosive price movements driven by industrial demand, geopolitical tensions, and supply disruptions. With markets for these metals experiencing high volatility and limited supply, investors are urged to consider them for high-risk, high-reward opportunities. The video underscores the importance of diversification and staying informed about global supply chain issues that could lead to significant price spikes, making these metals an intriguing option for those seeking greater exposure to precious and industrial metal markets.

Takeaways

• 😀 Platinum and palladium prices have pulled back recently but still show strong year-over-year performance, with gold up 36% and silver up 34%.
• 😀 Both platinum and palladium have significant industrial applications, particularly in catalytic converters for internal combustion engine vehicles.
• 😀 Palladium's supply is critically tight, with only 7,196 Troy ounces available, compared to millions of ounces of other metals like gold and silver.
• 😀 Geopolitical tensions, particularly the Russian invasion of Ukraine, have led to significant price swings in palladium, and production is concentrated in Russia and South Africa.
• 😀 Rhodium, another platinum group metal, experienced a massive price surge from $600 to over $29,000 per ounce from 2016 to 2021 due to increased demand for catalytic converters.
• 😀 Rhodium's price corrected to around $4,700 per ounce, serving as a reminder that prices in smaller, illiquid metal markets can be extremely volatile.
• 😀 Tungsten, a critical metal for military and aerospace applications, has seen a supply risk due to China’s recent ban on exports, which could lead to price increases.
• 😀 Antimony, essential for military and industrial technologies, has seen its price surge as China controls most of the supply, and the U.S. faces a critical supply shortage.
• 😀 The U.S. has only 17 days worth of antimony reserves, which presents national security risks and has caused prices to soar, highlighting the geopolitical tension around this metal.
• 😀 Nickel prices spiked in 2022 due to a short squeeze, and geopolitical changes, such as Indonesia joining the BRICS nations, could further impact its supply and price.
• 😀 Copper is experiencing growing demand, particularly driven by infrastructure and clean energy, and is forecast to see rising global consumption, making it a promising investment.

Q & A

What factors are driving the potential for explosive price movements in metals like platinum and palladium?

The potential for price increases in platinum and palladium is driven by strong industrial demand, particularly from the automotive sector, and tight supply chains. Geopolitical factors, such as Russia's involvement in palladium production and regulatory changes like EV mandate rollbacks, are also key drivers of price fluctuations.

Why is palladium's supply considered critically tight, and how does this impact its price?

Palladium's supply is considered critically tight because only 7,196 million troy ounces are available, a relatively small amount compared to other precious metals like gold and silver. Due to the limited supply, even small changes in demand, particularly from the automotive industry, can lead to significant price movements.

How did geopolitical events, such as the Russian invasion of Ukraine, affect palladium prices?

The Russian invasion of Ukraine in 2022 caused a spike in palladium prices, as Russia is a major producer of the metal. Supply chain disruptions, particularly the fear of sanctions on Russian exports, led to increased market volatility and price surges.

What is the lesson learned from the price movements of rhodium between 2016 and 2021?

The dramatic price increase of rhodium—rising from about $600 to $29,000 per ounce—demonstrates how small, illiquid metal markets can experience extreme volatility due to supply-demand imbalances. However, the sharp price correction afterward highlights the risk of such investments, emphasizing the importance of taking profits when possible.

What are the potential consequences of China’s ban on tungsten exports?

China's ban on tungsten exports could lead to significant price increases and geopolitical tensions. Tungsten is crucial for military applications, including armor-piercing ammunition and aerospace components. A disruption in its supply could impact defense industries and cause supply chain crises similar to the rare earth metal crisis of 2010.

Why is antimony considered a critical metal for national security?

Antimony is vital for manufacturing military electronics, armor-piercing ammunition, missile guidance systems, and even nuclear weapons. China currently dominates its production, and with recent export bans, the U.S. faces a critical shortage that jeopardizes national security, as its reserves are limited to just 17 days' worth of consumption.

What makes the antimony supply crisis an urgent issue for the U.S. government?

The antimony supply crisis is urgent because the U.S. military and defense sectors depend heavily on this metal. With only a small reserve, the U.S. is vulnerable to supply shocks that could disrupt critical military operations, prompting the Pentagon to secure alternative sources of antimony.

What role does Military Metals Corp play in addressing the U.S. antimony supply crisis?

Military Metals Corp is working to secure Western-controlled antimony supply by exploring high-grade deposits outside of Russia and China. The company is well-positioned to address the supply shortage, and its involvement has attracted investments from the U.S. Department of Defense.

What caused the nickel market to experience a short squeeze in 2022, and what could happen next?

The nickel market experienced a short squeeze in 2022 when prices spiked from $25,000 to over $100,000 per ton, driven by a combination of supply issues and market speculation. The LME halted trading to stabilize the market, but such actions erode confidence in paper markets. Future squeezes could occur if supply tensions rise again, particularly with Indonesia joining the BRICS nations.

Why is copper's outlook considered bullish, and what role does global demand play in this prediction?

Copper's outlook is bullish because global demand is expected to nearly double, driven by industrial needs, particularly in construction, renewable energy, and electric vehicles. The recent breakout from a major downtrend in copper prices signals a potential for continued price growth, making it an attractive investment.