In a year that posed many challenges in a wide range of industries, the junior mining industry was especially affected. Tradeshows, Conferences & other important events were forced online, mining camps had to develop COVID-19 protocols to continue operations, and business shifted to being conducted over video conference. While 2020 may be a year to forget, Junior Mining 2021 may well be one to remember, here’s why.
Shift toward technology
Families were forced to stay indoors this year, and that meant finding fun, engaging and healthy activities. Some popular products like Peloton, skyrocketed in sales due to the need for indoor workouts. This shift in the market towards products and services that are typically done ‘at-home’ is described by the ‘Stay At Home Index’.
Many of these types of products, and the public companies behind them, rely on technology directly or indirectly. For example, while Peloton is a physical product obviously requiring physical material to produce, Zoom is software that itself isn’t made up of material but requires use of a computer, webcam, mouse, keyboard, etc.
As you may know, these types of physical technologies are made from various types of metals, especially Rare Earth Elements. The demand for these types of products, and all the accessories to go with them is sure to put pressure on the mining industry to keep producing, meaning plenty of opportunities for those who keep their eye on it.
Focus on renewable energy
The shift towards renewable energy in 2021 is nothing new, but there have been some notable announcements that make 2021 a unique ‘kickstart’ to the mining industry.
With cities, provinces & whole countries vowing to move towards a renewable energy model, pressure on the battery industry increases, which means added pressure on junior mining companies involved in battery metals. Companies like Commerce Resources are primed for success because of this.
As the price of gold rises, investors typically look to outperform this by taking advantage of the many junior mining companies currently in the gold industry.
Companies searching for this prized mineral are rewarded by large increases in stock price when a discovery is made, often significantly more than seen in the gold price.
Follow the gold price trend and look for gold junior companies releasing consistent, important news.
2020 in the markets was surprising for many, but as the tech stocks exploded, many retail companies felt the pressure. As 2021 rolls in, less focus will be on technology, and a shift towards new technologies, new industries and new discoveries is imminent.
The world is moving towards a more renewable, greener tomorrow, and those who identify the opportunity in mining are sure to see the greenest tomorrow of them all.