WORK | Business & Finance
way. Stocks in silver have also skyrocketed
and is used in every single iPod, has seen stock
in recent years, with 80-90% of all silver ever
prices double in the last year; five times its
mined used for industrial purposes. Because of
price in 2009.
its strength, conductivity and reflectivity, silver remains a critical component of electronics,
Another resource which is being named
batteries, bearings, catalysts, solar energy,
by some as the ‘Oil of the 21st Century’ is
water purification, coins and jewellery. At the
lithium; a featherweight material used as a key
current rate of usage, all known silver reserves
ingredient in everything from pharmaceuticals
will be mined out within 27 years; plans for
to rocket fuel. Light enough to float on water
new technology may see this figure drop to
and soft enough to be cut with a knife, lithium
15 years; and with global consumption on
is used as a lubricant, propellant and nuclear
the rise, if the rest of the world starts using
reactor coolant. However, it’s key property
even half the amount of silver used in the US,
remains that pound for pound, lithium can
supplies could run out in as little as seven
store more electric energy than just about any
years. This makes silver an even more precious
other material. For this reason alone, demand
commodity than gold, whose inventories still
for lithium is soaring due to its use in electric
maintain 80-90% above ground.
batteries. Possessing twice the density of the nickel-cadmium technology of old, lithium
Other hot commodities are rare earth metals,
batteries are used in everyday objects like digital
and 97% of the world’s production of these
cameras and games consoles, smartphones and
are controlled by China. Worryingly, China’s
iPads. It’s estimated that an investment into
Ministry of Commerce claims that its rare
lithium will see the biggest returns in the near
earth metal supplies will last just 15-20 years,
future due to President Obama’s resolve to have
which means that life as we know it, with our
one million electric cars on the road by 2015; ten
flat screens, computer hard drives, fibre-optic
million by 2018 – and that’s just in the States.
cables, satellites, GPS and MRI machines,
With six pounds of lithium required in every new
will become a thing of the past. What’s more,
electric car; the GM Volt, the Toyota Prius, the
in an attempt to conserve these precious
Honda Insight and Nissan’s Leaf to name a few,
resources, Beijing recently cut
the transition from traditional automobiles to
exports to Europe, Japan
electric greener versions is still in its infancy,
and the United States.
therefore we predict that an investment into
Due to this scarcity,
lithium stocks will yield huge returns. With
prices of elements like
the global number one mining company’s
Neodymium,
which
lithium stocks up 650% in the last four years,
makes the strongest
it looks like going back to basics is the only
magnets in the world
way forward.
Lithium
Silver
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