Resource investors, take note: By 2025, just 10 years from now, energy consumption in Asia will increase a whopping 31%. A whole two-thirds of that demand, driven largely by China and India, will be for fossil fuels, most notably coal.
Increasingly, investors may look to out of favor sectors such as the uranium and rare earth sector, which is critical for clean, carbon-free energy. These sectors are crucial for the carbon reducing future of emerging nations such as China and India.
Four months ago I warned my readers that the uranium price could breakout because of the rise of terrorism and radical extremism in West Africa. This past week there was a suicide car bombing on a French uranium mine in Niger.
As debates over the sequester ramp up and uncertainty over the debt ceiling looms, it is likely that investors will look to buy metals as a “safe-haven” trade. With increasing demand by commercial and industrial manufacturing, silver should see some significant upside in months to come.