It’s a necessity.
COVID-19 has spotlighted our need for telemedicine… remote work… and remote schooling.
They all have two important things in common.
They’re essential services. And they need fast, reliable internet connections.
So do many of the tech trends we track – from self-driving cars… to artificial intelligence (AI)… augmented reality… the Internet of Things… and even holographic projection.
And as our tech expert, Jeff Brown, has been shouting from the rooftops, 5G wireless networks provide faster and more reliable internet than anything we’ve seen before.
Jeff is clear. 5G isn’t just some “upgrade” that allows us to download movies faster.
It’s critical infrastructure for America’s national security. And as you’ll see today, the next round of 5G millionaires is about to be minted as the 5G boom accelerates.
They won’t get rich only from investing directly in 5G stocks. Some of the biggest gains will be from the raw materials that “fuel” these tech breakthroughs.
As Legacy Research cofounder Bill Bonner puts it, “The secret to building wealth is being in the right place at the right time.”
But it’s not about dumb luck.
What he means is your success as an investor isn’t so much about what stocks you pick. Instead, it’s about what he calls “connecting the dots” – getting the big picture right and backing the big trends. Bill…
Being in Detroit at the start of the automobile boom in the 20th century was a lot better than being in Delhi. But there is a time for everything. Detroit peaked in the 1960s. Then it was time to move on.
The first two decades of this century were a great time to be in real estate in California and companies listed on the New York Stock Exchange.
But where are the best places to be in the rest of the 21st century? Getting this decision right is the single most important thing you can do to build wealth over time.
And as we started to show you yesterday, we believe one of the best places to be over the next decade is “geo-tech.”
If you’ve been with us for a while, you’ll know all about the rise of 5G… AI… and self-driving cars and trucks.
What’s less well-known is that these tech breakthroughs require raw materials to “fuel” them.
Take lithium.
It’s a silvery-white metal that’s No. 3 on the periodic table. It’s a key component of the lithium-ion batteries that power electric vehicles (EVs).
As Dave Forest showed yesterday, lithium-ion batteries are also critical to power 5G towers. Old lead-acid batteries don’t cut it.
Dave is our resident commodities investing expert. He’s a trained geologist. And he believes lithium and other geo-tech metals are great “backdoor” plays on the 5G and EV megatrends. Dave…
Lithium is not just needed at the ground floor to power the 5G boom. Lithium-ion batteries are also at the heart of every electric vehicle that rolls off the production line.
Every Tesla made… nearly all EVs made around the world… run on these batteries. By investing in a lithium mining or exploration company, you can pick up exposure to massive, world-changing trends such as the advent of 5G and the EV revolution.
This makes securing lithium supply a matter of national security for the U.S. The U.S. doesn’t want to be at the mercy of foreign importers of geo-tech metals.
Last month, the Trump administration released “A Federal Strategy to Ensure a Reliable Supply of Critical Minerals.”
It directed the U.S. Department of the Interior to hunt for domestic supplies of geo-tech metals (referred to in the report as “critical minerals”). It also called for speeding up permitting for mining these metals on U.S. soil.
Lithium is one of the critical minerals on the list.
It’s no wonder Team Trump is worried. The U.S. has only one operational lithium mine – the Silver Peak mine in Nevada.
But that’s about to change, as the U.S. is beefing up domestic supply. Here’s Dave with more…
Most of the supply of lithium and other geo-tech metals comes from China. But we don’t want to rely on China for things that are critical to our communication networks and defense systems. We need to have our own secure supply.
The great thing, from a U.S. standpoint, is we used to mine a wide range of geo-tech metals. Over the last 20 or 30 years, the domestic mining industry has largely decayed. But in-ground supplies of these critical minerals are there. So we can switch it back on again. And that’s what’s about to happen.
The Trump administration’s new strategy aims to streamline approval for new mines. That’s a strong tailwind for the U.S. geo-tech industry. Dave again…
The profit potential is mind-boggling. You’ve got this push to secure these metals in the interest of U.S. national security. And now you’ve got Team Trump trying to speed up the development of new mines.
If you’re a mining company developing a new lithium mine… or a mine for other geo-tech metals, such as cobalt and vanadium… you’ve got a bunch of tailwinds pushing you forward.
I’ve been telling my readers that we’re witnessing an American mining renaissance. It’s not happening in just the traditional mining places like Nevada and Arizona. Wisconsin, Maine, Michigan, and Florida – states you don’t typically think of as mining states – are developing new mines.
This won’t be a boon just for American companies and American workers.
As I mentioned up top, geo-tech metals such as lithium are 100% critical to some of the most anticipated tech in the world today.
This includes tech that’s critical to U.S. national security. For instance, lithium’s crucial to everything from anti-submarine torpedoes to our electrical grid.
And Dave believes miners of these strategic metals will explode higher.
Most folks now see mining as an outdated, old-world industry. And you won’t see Jim Cramer jumping up and down about mining stocks of these obscure metals on CNBC too often.
But with world-changing tech such as 5G and EVs coming on strong, mining for these critical minerals is anything but outdated. It’s at the cutting edge of the tech revolution.
So consider buying shares in the Global X Lithium & Battery Tech ETF (LIT) as a speculation.
LIT has holdings across the lithium-battery supply chain. A dozen lithium miners make up its main focus. But it also holds companies involved in refining the metal, building the battery packs, and distributing batteries to customers.
If you want a more targeted approach… Dave has identified one tiny lithium mining stock that he believes is on the verge of a deal with Tesla. Catch up on Dave’s breaking news brief on that here.
Good investing,
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Chris Lowe
July 2, 2020
Bray, Ireland
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