Issue link: http://resourceworld.uberflip.com/i/990287
J U N E / J U L Y 2 0 1 8 www.resourceworld.com 5 Editor's Comments Ellsworth Dickson Ellsworth Dickson, Editor-in-Chief Email: editor@resourceworld.com T: 604 484 3800 | 1 877 484 3800 I t's a stunning development that automakers are switching to electric vehicles (EVs) big time and some even abandon- ing petroleum-powered vehicles. The public has been slow to buy EVs but there will be a massive shift in the near future. The successful launching of electric cars will no doubt be followed by electric pickup trucks, SUVs and, if Tesla can do it, electric semi tractor-trailers. Since Elon Musk's unveiling of the semi, there hasn't been much news – is that a bad sign? In any case, massive vehicle electrification will have a major impact on companies exploring for and mining battery metals such as lithium, cobalt, manganese and nickel as well as graphite. EVs also use a great deal of copper – maybe enough to make you bullish on the red metal. Speaking of vehicles, there are a surprising amount of rare earths in your car – the electric motor magnets for your power windows, seats, alternator and heater, the LCD screen, glass, cata - lytic converter and radio/stereo. To report on specialty metals and rare earths, Resource World attended the Argus Specialty Metals Week Conference in Henderson, Nevada, a gathering of world class experts. However, with all this interest in specialty metals and rare earths, let's not forget about the most glamourous metal of all – gold. On May 3, the World Gold Council posted a report on how gold had a soft start to 2018 with demand down 7%, the lowest first quarter since 2008. They noted that the main cause was a fall in investment demand for gold bars and gold-backed ETFs, partly due to range-bound gold prices. Not too exciting. Then, unexpectedly, just a few days later on May 8, GFMS pub - lished a comprehensive report – Gold Survey 2018 – predicting that gold will rise to its highest price in five years due to ongoing politi- cal uncertainty. GFMS, a unit of Thomson Reuters, noted that this uncertainly is driving investors to gold as its traditional safe-haven. "Uncertainty revolving around US President Trump's politics, along with ongoing tensions in the Middle East and Brexit nego- tiations will remain gold's key drivers," GFMS stated. Looking into the future, GFMS predicts, "Retail invest- ment is forecast to rise in 2018 following four consecutive years of declines, thanks to a pick-up in bar demand, supported by improving sentiment towards gold and rising price expectations." There are other bullish circumstances for gold, according to GFMS, including the Chinese central bank expected to resume purchases, leading to a rise in net official sector demand this year to more than 400 tonnes for the first time since 2015. GFMS forecast that gold would average US $1,360/oz this year, up 8% from 2017, with some short-term moves towards US $1,500/oz. Gold has not risen above that level since early 2013. This all looks bullish; however, as gold (and silver) bugs know only too well, just when precious metals start to break out, they disappointingly pull back. Maybe this year it will be different. Just how much high-risk junior mining money is being siphoned off into marijuana? I find it disconcerting that 59 can - nabis companies on Canadian stock exchanges raised $1.29 billion in 2016. This has the earmarks of ending badly for most of them with their unrealistic sales expectations going "up in smoke" (in my opinion). Meanwhile, some junior explorers are saying there is a softening/deterioration in the junior mining equity financ- ing markets. The bottom line is that many junior miners have real assets in the ground and offer undervalued opportunities. n With all the interest in battery metals, let's not forget gold