Mining is an attractive sector for investors looking to grow their wealth through long-term investments. The industry is currently in a good position, with high demand and low supply for many resources. This means that investors can benefit from capitalizing on the current market conditions. In this blog post, we will provide an overview of the mining sector and discuss four natural resources that are worth investing in for 2022.
Why Will Choose Natural Resources for Investment?
The mining sector is currently in a strong position, with many natural resources in high demand and low supply. This has led to increased prices for these commodities, which is good news for investors. The mining industry is also growing rapidly, with new technologies and methods being developed all the time. This means that there are plenty of opportunities for investors to make a profit.
Thanks to countries such as China, India and the United States, the demand for natural resources is expected to continue to grow in the coming years. This is good news for investors, as it means that there is potential for price increases and profits.
But where should you invest your money? Here are four natural resources that are worth considering for investment in 2022:
Gold
Gold is a precious metal that has been used as a form of currency, jewelry and investment for centuries. It is popular with investors because it is rare, durable, and is also a good hedge against inflation.
The current demand for gold is high due to its use in jewelry, electronics and investment.
Furthermore, the supply of gold is relatively low, as it takes time and expensive machinery to mine. This means that the price of gold is likely to continue to rise in the future, already growing 13.5% in price since the start of 2022, according to capital.com. Essentially, gold is the perfect investment for you if you’re looking for a safe place to put your money with minimal risk.
You can invest in gold via gold ETFs, gold stocks or gold bullion. For more information, check out our complete gold breakdown here.
Nickel
Nickel is a silvery-white metal that is used in the production of stainless steel and batteries. It is popular with investors because it is in high demand and has a low correlation to other asset classes. Nickel is also a good hedge against inflation.
Nickel’s current demand is high due to its industrial uses in stainless steel and in batteries. In fact, the recent explosion of electric vehicles has caused the demand for nickel to soar, with the resource looking to grow at a 7% annual compound growth rate, according to The Assay.
Meanwhile, the supply of nickel remains low as it takes time to mine and process. This is likely to keep pushing the prices up, with nickel already increasing in prices over 2022.
You can invest in nickel via nickel ETFs, stocks or futures.
Uranium
Uranium is a radioactive metal that is used in the production of nuclear power. Thanks to the shift away from traditional sources of energy, such as coal and oil, uranium is in high demand. As a result, this has had a positive effect on prices, with uranium increasing in value by 35% since the start of 2022.
The demand for uranium is expected to continue to grow as more and more countries move away from traditional sources of energy. This is good news for investors, as it means that there is potential for further price increases.
However, some countries, such as China and Russia, have large stockpiles of uranium, which could be released onto the market and cause prices to fall. This is a risk that investors need to and should be aware of.
Lithium
Lithium is our final pick for hot resources in 2022, and this is all thanks to its demand driven by electric vehicles. In fact, the price of lithium has quadrupled since 2016 and is expected to continue to grow as the demand for electric vehicles increases.
This is good news for investors, as it means that there is potential for significant profits. However, it is worth noting that the prices of lithium are very volatile and can fall sharply if there is a slowdown in the electric vehicle market. There are some risks associated with this resource, as it is very reliant on the electric vehicle market. Therefore, if the industry finds a more suitable resource for their vehicles, lithium could become obsolete, and prices could plummet.
Investors should be aware of these risks when considering investing in lithium, but overall it is a resource that has great potential for growth in the future.
Gold, nickel, uranium and lithium are all great resources to consider investing in for 2022. All of these resources are in high demand and have good potential for price growth. However, it is important to remember that all investments come with risks. You should always conduct your own research before making any investment decisions.
Looking for more investor insights? Read up on how to diversify your portfolio here.
