Cathie Wood tweeted last night, "The 10-fold increase in lithium prices during the past two years is a clarion call for more production and supply. Now that CATL in China, Samsung and LG in Korea, and major auto makers have committed to the EV revolution, odds are high that lithium will be in excess supply during the next few years."
We like to look at industries and companies on a scale of 1 to 10 with 10 meaning that an industry or company is at its highest possible overvalued bubble valuation, 1 meaning that an industry or company is at its lowest possible undervalued bottom, and 5 representing a fair valuation.
It is very clear that Patriot Battery Metals (TSXV: PMET) at its recent 52-week high of $17.69 per share hit a level of 10. Lithium stocks in general are at a level of 9.
It is very clear that Augusta Gold (TSX: G) at its recent low of $1.15 per share hit a level of 1 and Gold Bull Resources (TSXV: GBRC) at its closing price yesterday of $0.04 per share hit a level of 1. Gold stocks in general are at a level of 2.
Lithium prices will fall another 50%-75% from their current levels while the downside for gold is $1,800 per oz followed by a rally to new all-time highs in the upcoming months!
G and GBRC will be trading at 10-20X higher share prices two years from now.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 194,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.