Palladium has recently become the most desired of the 4 precious metals (gold, silver, platinum) due to its acute supply and increased demand. Increased demand and finite supplies only leads to one thing: increased prices.
However, with all resources that are mined underground, there is a finite supply (until we learn to artificially recreate them or recycle them). The average individual in the US uses 8x more natural resources in their day-to-day life than the average individual in India - but India is catching up. This allows juniors to predict the potential profits of an orebody before they go into production, giving investors and the company confidence to move forward.ĭemand for natural resources is exponentially increasing as a consequence of the increase in world population: more people = more demand.Īs economies grow and evolve, consumption of natural resources per capita increases. This means that the industry has developed well-established trends and patterns, that can be forecast and predicted (major economic crises aside). Mining is one of the most established industries in the world, dating back 40,000 years to the first known records of coal mining - with industrial mining originating 10,000 years ago. However, with the need for a more sustainable future, comes the progression of Electric Vehicles using battery metals (Nickel, Cobalt, Lithium, Graphite, Copper) and the rise of carbon neutral energy from Uranium. We can predict that gold will always be desirable, steel will always be necessary and there will always be some level of demand for oil and gas.
There is a clear longevity to investing in mining: we are using resources today that we were using 3,000 years ago, just in a different way. Natural resources are the backbone of all industries on earth, and the demand is only increasing as supply becomes scarce. The one thing that connects all of those industries is natural resources.īitcoin could not be possible without the battery metals that build the computer its mined on, houses could not be built without steel, healthcare would struggle to function without the antiseptic properties of silver and cannabis could not be grown without the fertilising properties of potash. Think of all the other possible industries you can invest in: Bitcoin, Real Estate, Healthcare, Cannabis.
What are the pros and cons of investing in the mining industry? The Pros of Investing in Mining Mining provides a resource that humans can’t live without So whether you like it or not, mining is here to stay. So, is mining investment a good fit for you? Why should I Invest in Mining?Īlmost every product that you use on a daily basis has elements that started off buried underneath the ground. The mining industry can be one of the most volatile to invest in, but with high risk also comes high reward.
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