11 May 2022
Decarbonisation: Base metal stockpiles
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
As we progress through the current unpleasant correction in asset prices it is important to keep focus on what is ahead for investors this decade.
Not only is ‘software consuming the World’ through advances in artificial intelligence, battery technology, blockchain, robotics, gene sequencing but the World is also electrifying.
Transitioning to Net Zero requires more base metals than our current reliance on fossil fuels and these same base metal stockpiles have fallen 75% over the last decade because demand for electrification is outstripping supply.
For example, electric vehicles are 6 times more metal intensive than combustion engine vehicles.
Again the same also applies for renewable energy- nuclear is 2 times more metal intensive than coal, solar is 3 times more metal intensive than coal, onshore wind is 4 times more metal intensive than coal and offshore wind is 6 times more metal intensive than coal.
Click for charts.
These megatrend investment opportunities are already in place which is why it is most important to remain invested according to your appetite for volatility and when fear and panic do take hold, react by buying more quality assets at discounted prices.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.