An increasingly important thing to consider when investing in commodities will be whether a given material is needed for the manufacture of clean energy products and other emerging technologies.
For example, lithium is a key material for the batteries currently used by many hybrid electric vehicles, and gallium is one of several relatively rare metals that has been playing a growing role in the manufacture of solar photovoltaic panels. Similar materials are being used to build wind turbines and energy efficient light bulbs.
With these things in mind, the U.S. Department of Energy recently issued a request for information on the rare earth metals currently being used in the renewable energy sector. Among the metals cited in that announcement were lanthanum, cerium and neodymium.
More recently, the United Nations Environmental Programme reported that as these rare metals continue to be required for clean energy and other sectors, there is a strong possibility that there could be acute shortages of some of them.
With this in mind, the organization strongly advised that a greater emphasis be placed on recycling old and discarded consumer and energy products that contain these materials.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.