Published on January 31 2018

The Clear Winner in the EV Revolution

By Justin Spittler, editor, Casey Daily Dispatch

I couldn’t believe it.

I was biking along a beach road in Tulum, Mexico when I caught a glimpse of the future out of the corner of my eye:

Tesla charging stations.

I was so surprised to see them, I pulled over and took a picture.

These stations are simple. You pull up to one, plug in, and your vehicle charges. It’s basically a gas station for electric vehicles (EVs).

They’re becoming common sights in the States. But I never expected to see one in Tulum.

That’s because Tulum’s a tiny beach town. Here, dependable internet is a luxury. At times, it can even be hard to get your hands on cash.

In short, Tulum’s not exactly ground zero for cutting-edge technology. And yet, it has its own Tesla charging stations.

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• This tells me the EV revolution isn’t just happening…

It’s unfolding faster than I could possibly imagine.

Regular readers know what I’m talking about. If you’re new to the Dispatch, here’s what I mean.

In short, the EV market is blowing up before our eyes.

There are about one million of these vehicles in the world today. A few years ago, there were only a few hundred on the road.

EVs now make up just 1% of the global passenger vehicle market. But that’s just the beginning. By 2040, experts project that 35% of all passenger vehicles will be electric.

This is a huge deal, and not just for the auto industry. This revolution will also trigger an explosive rally in one of the world’s most important commodities.

• I’m talking about copper…

Now, I know most people don’t think of copper when they think of EVs.

But it will play a massive role in this revolution. I’m not the only Casey analyst who thinks this, either.

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Louis James, our in-house natural resource expert, says EVs will be a “game changer” for copper. Aside from Doug, he knows more about the metals markets than anyone I know.

According to Louis and his team, copper is the clear winner. Here’s why:

There’s copper in lithium batteries, but also in engines, windings, cables, and charging points, among many other EV-related uses. This sets copper apart from other energy metals such as lithium, which, for cars, is just in the battery.

• The facts back up what Louis is saying…

You see, the average electric car requires 330 pounds of copper.

That’s four times as much copper as a conventional car requires. An electric bus, on the other hand, can require as much as 814 pounds of copper.

And that’s just for the vehicles. Remember the charging station I showed you earlier? Each one of these requires between 1.5 and 17 pounds of copper, depending on its charging speed.

• In short, the EV revolution is going to consume enormous amounts of copper…

But there may not be enough copper to meet this coming surge. Louis’ team wrote earlier this month:

A key point is that not enough copper is being discovered to meet future demand. Low copper prices have led to fewer companies looking for copper. Exploration budgets were slashed.

As a result, there haven’t been any major copper discoveries in decades. Weak prices also led to industry-wide high-grading. This is when companies mine their high-grade ore first. It’s a way for companies to survive periods of low prices. But it’s a near-term solution that creates a long-term problem.

When the market turns around, they are left with a lower average-grade of ore. So even as prices head higher, many producers will still suffer higher production costs.

That will be tough for them, but it makes us even more bullish on copper.

In closing, demand for copper is set to skyrocket while the supply gets tighter. That’s a recipe for much higher copper prices.

So consider speculating on copper if you haven’t already.

You can do this by buying the iPath Bloomberg Copper Subindex Total Return ETN (JJC), which tracks the price of copper.

Regards,

Justin Spittler
Tulum, Mexico
January 31, 2018

P.S. Copper isn’t the only commodity Louis is excited about today. Right now, a small group of stocks is set to soar 500%. And that’s why it’s critical you pay attention—and take the right steps before it’s too late. You can learn more about this huge opportunity by watching this urgent video.


Chart of the Day: Bitcoin’s Been Cut in Half… Here’s What to Do

By Joe Withrow, analyst, Casey Research

Bitcoin has plummeted in value over the past month.

As you can see from today’s chart, bitcoin has fallen 50% from its December 2017 high of $20,089.

After such a massive drop… and amidst recent regulatory uncertainty… many are beginning to doubt bitcoin’s longevity.

But not us…

As we told you earlier this month, bitcoin is here to stay… But it is extremely volatile.

Bitcoin fell by more than 20% on five different occasions in 2017 alone. And it shot up to new highs after each major crash.

Think about this: One bitcoin was worth less than $1,000 at the start of 2017. Today, that same bitcoin is worth $10,000. That means bitcoin has gained 900% in just over a year… even after this recent 50% crash.

How many other assets can you say that about?

Here’s the point: We think bitcoin will be much more valuable one year from now than it is today. It’s just too useful for people all over the world to ignore.

Be rational with your risk management… but do not panic. If anything, use this as an opportunity to buy bitcoin at a discount.

—Joe Withrow


Reader Mailbag

Today, a reader responds to our recent Dispatch, “How to Profit From the 2018 Dollar Crash”…

An amusing topic, at least for a Dutch citizen. For many years, I worked in international business before the euro was introduced. Every day, I checked 10–12 different currencies (no internet in those days). Looking at the USD/EU variations since the introduction, you see large swings. In the Netherlands, we learned to cope with those swings, because a large proportion of our GNP depends on exports. You US guys have ignored that possibility, because your domestic market simply absorbs most of your attention.

My personal conclusion about the USD—if I want to invest in NYSE stock—is to look at the result as if I were living in the US. I have seen so many ups and downs of the USD that they do not make me nervous anymore. It’s just a matter of patience (unless the US will go broke, which doesn’t seem impossible). Perfect dilemma!

—Jan

If you have any questions or suggestions for the Dispatch, send them to us right here.


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