Energy Metals Lead The Charge

Gold and silver aren’t the only viable plays in the metals space – and they aren’t currently the leaders.

On Wednesday, both copper and platinum rallied up to multi-year highs. Rhodium, meanwhile, currently commands $21,000 per ounce – yes, per ounce – making it one of the most valuable elements on the planet.

What’s driving these “energy” metals? Besides ongoing currency depreciation and the risks of higher inflation, which will help boost all hard assets over time, rising demand for electricity in general and electric vehicles in particular.

President Joe Biden recently decreed that the federal government must transition its entire fleet of cars, vans, and trucks to electric motors.

That’s just for starters. Next, the administration aims to mandate that all new vehicles sold in the United States are electric.

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Image Source: Pixabay

The Zero Emission Transportation Association, a lobbying group backed by Tesla and other corporate interests, is pushing for the abolition of gasoline-powered cars by 2030.

Nevermind that such a move would mean more burning of coal and natural gas to generate the electricity needed for millions of “zero emission” vehicles. It would also require the mining of millions more tons of base metals, including copper and nickel.

The need for copper is exponentially greater in electric vehicles as compared to conventional cars. A typical gas-powered car requires about 30 pounds of copper. A battery-powered electric vehicle averages a massive180 pounds of copper– six times as much.

According to the International Copper Study Group, “At the heart of the electric vehicle, copper is used throughout because of its high electrical conductivity, durability and malleability. And even more is used in charging stations and in supporting electrical grid infrastructure.”

The electrification push will mean a massive demand surge for silver as well. Silver is used in virtually all high-tech components of electric vehicles. It is also used in solar panels, the fastest growing source of industrial demand for silver.

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