These Two Elements Could Make You a Fortune

by Andrew Zatlin July 07, 2023 12:00 pm ET

Forget about gold, silver, or even lithium.

The two elements that could change the world are ones you've probably never heard of...

But they're at the heart of today's investment opportunity.

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

These Two Elements Could Make You a Fortune

Recognize this?

It's the Periodic Table of Elements. Odds are, you had to memorize at least part of this chart in school.

Today, though, I'm not interested in testing your memory. I'm interested in the two elements in the red box you see below:

These are elements Nos. 31 and 32 — gallium and germanium.

Why am I so focused on these two obscure elements? Because whoever controls the supply of these metals effectively controls the world. Let me explain...

No Hype, But a Lot of Value

Gallium and germanium may not have the same name recognition as elements like hydrogen, carbon, or even gold. But these two rare metals are essential in today's digital age.

Gallium and germanium are used to make semiconductors, which go in everything from cars to smartphones to computers.

These materials have become extraordinarily valuable. And one nation is responsible for producing the overwhelming majority of them...

Keys to the Kingdom

I'm referring to China.

China produces 60% of the world's germanium, and 80% of the world's gallium. Just look at its 2022 gallium production compared to the rest of the world:

Notably, China also plays a key role in the supply chain for other critical minerals like lithium, graphite, and cobalt.

Simply put, you can't make a semiconductor without Chinese supplies. Let that sink in for a moment. Without this country's help, we can't make phones, computers, or electric vehicles ("EVs"). And lest you think I'm being hyperbolic, consider this:

According to the International Energy Agency, the average EV requires 500 pounds of materials like lithium and gallium. That compares to 100 pounds needed for a gas-powered vehicle.

The reliance on these materials means China holds the keys to the kingdom. And this nation's grip just got a bit tighter. You see, China announced plans to restrict exports of gallium and germanium.

Why? To answer that, we need a brief history lesson...

China Fights Back

While in office, Donald Trump began limiting China's access to leading technologies, in particular semiconductors. In fact, thanks to Trump's administration, China is boxed out of buying cutting-edge semiconductor manufacturing equipment.

So it makes sense that China's move to restrict access to key materials is simply this country fighting back. And now the U.S. and the rest of the world must be ready for the aftermath.

This situation is a little like what happened in the 1970s. Fifty years ago, the Organization of the Petroleum Exporting Countries ("OPEC") suddenly restricted oil production, a move which disrupted the global economy.

Now, China is essentially the OPEC equivalent in today's digital era. It's rattling the cages in terms of semiconductor production, and the potential ramifications are huge.

So, how much trouble is the U.S. in?

Urgency Creates Opportunity

Maybe not as much as you'd think. That's because the American government wasn't completely blindsided by China's decision.

In fact, the U.S. and nations like Japan have been trying to create an alternative supply chain for these minerals for some time.

Not only does America not want to be dependent on China, but remember that the Biden administration has promised technological advances like mainstream adoption of EVs. That means greater urgency to finding alternative supply chains. And here's the key...

Greater urgency means a greater chance of disruption. And where there's disruption, there are life-changing investment opportunities!

We'll keep a close eye on this story as it develops. To ensure you're in position for our most exciting investment plays, make sure you become a "Pro" member, or even consider subscribing to our newly-launched premium service, Moneyball Reset Trader.

Trust me, these are the best ways to potentially take home a windfall of profits from this latest escalation in the global trade war.

As always, we're in it to win it. Zatlin out.