Lithium Gets Its Own ETF

Source: MetalMiner, Lisa Reisman (7/20/10)

"Global X Lithium will track lithium producers and battery makers."

Lithium gets its day in the limelight as Global X Lithium, an ETF, will launched later this week. Global X Lithium will track lithium producers and battery makers. The idea for the fund came from R. Marcelo Claure, a Bolivian businessman and founder of Brightstar Corp. a $3b distributor of hand-held devices, according to the WSJ. Bolivia contains the largest deposits of lithium so it’s no surprise that the idea for the fund came from that country. Claure, an investor in MC Capital Advisors, a hedge fund, approached Global X Management to start the ETF.

What we find particularly interesting while watching the development of these funds, involves the rationale behind the funds. We understand those rationales to include:

General demand for ETFs, according to The Wall Street Journal, "there were 914 listed ETFs at the end of June up 21% from a year ago. . .Since 2007, ETFs have raked in $480 b in net cash inflows, bringing total assets to $780b."
Trend in partnering among companies looking to create markets for "obscure" materials for which there is rising demand.
Creating physical inventories via financially traded products to supply a growing market.
And as a result of three above—creating the unintended (or intended) consequence of raising the price for some of these rare earth metals (thus resulting in more attractive mining economics)—which is a good thing if you believe the demand for these metals will increase over time.

As a result of all four trends listed above, we suspect the number of ETFs in the rare earth metals, minor and related metals markets will continue to grow.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."