Coal – Naughty to Some, Nice for Biden?

by Andrew Zatlin April 21, 2023 2:00 pm ET

Kids who misbehave will find a lump of coal in their stocking.

At least, that's what we've all been told growing up.

The thing is, this resource might find its way onto Joe Biden's wish list...

Because it could help keep him planted in the Oval Office.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Coal – Naughty to Some, Nice for Biden?

It's not often that I spot an opportunity being served up on a silver platter. So when I see one, I want to grab it with both hands.

This opportunity centers around one of America's most familiar resources.

And not only could it help President Joe Biden secure another term in office...

It could also help investors like us secure a windfall of profits.

Our Story Begins

Our story begins in 2011. That's when Germany decommissioned its nuclear power plants and focused on solar and wind power.

Ever since, the nation has ramped up these alternative energy sources and dwindled its dependance on electricity from nuclear power.

It sounds admirable. But the shift hasn't gone smoothly.

Essentially, solar and wind power hasn't been able to replace the electricity generated by nuclear power. And to make up this shortfall, Germany has increasingly relied on another energy source...

Old King Coal

I'm referring to coal.

Coal is how Germany has been getting through its energy transformation. Take a look:

As you can see, the country's use of nuclear energy (middle column) has tumbled. Meanwhile, coal usage (far left column) has risen.

Last year, Germany spent $5 billion on coal. But here's where things get interesting...

America to the Rescue

It's not just that Germany is using more coal, it's where it's buying this coal from.

You see, when Russia invaded Ukraine, Europe banned imports of Russian coal. So Germany had to look elsewhere. Where did it turn to? America!

Russian exports of coal to Europe went down to zero. Meanwhile, U.S. exports of coal to Europe went up by 7 million tons.

Keep in mind that Russia's ban went into effect in late 2022. So this 7 million figure is the total for just part of this year. Annualized, we're looking at U.S. coal exports reaching 14 million tons in 2023.

And here's where things get even more compelling...

Mind-Bogglingly Stupid

In the wake of increased dependence on coal, you'd think Germany might reconsider its stance on nuclear power.

But amazingly, the country recently made a mind-bogglingly stupid decision to decommission its remaining nuclear power plants. Now an additional 6% of electricity production just went offline and will need to be replaced by coal.

Translation? That 14 million figure is about to be dialed way up.

And that's where our opportunity as investors takes shape...

Three Words for You

The U.S. coal industry is about to explode. Not only will exports to Germany increase – winter is about six months away – but China's coming back online, and it too depends on coal for electricity generation.

Simply put, when it comes to investing in energy, I've got three words for you: Coal, coal, coal.

How Biden Fits In

Now, there's one other aspect of this situation that I find intriguing.

You see, Biden is firmly anti-coal. Yet he's faced with two solidifying facts:

The path to remain in the White House will run through the energy industry.
Coal is an increasingly hot sector within this industry.

How long will Biden be against it? That's something we'll need to keep an eye on. In the meantime...

Let's get positioned to invest in the coal sector, where prices are already moving up. Two weeks after Germany decommissioned its remaining nuclear plants, for example, coal prices jumped 10%.

That means we need to get in now and enjoy the profits that will come as coal takes the spotlight on a global stage.

How should we invest in this sector? I've saved that answer for my "Pro" subscribers, and it's those members who will be able to take advantage of this golden opportunity...

A golden opportunity handed to us on a silver platter.

We're in it to win it. Zatlin out.